If the nominal rate of interest is 2 percent, and the expected inflation rate is -10 percent, the real rate of interest is
A) 2 percent.
B) 8 percent.
C) 10 percent.
D) 12 percent.
Answer: D
If the nominal rate of interest is 2 percent, and the expected inflation rate is -10 percent, the real rate of interest is
A) 2 percent.
B) 8 percent.
C) 10 percent.
D) 12 percent.
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.