Calculate real interest rate if the nominal interest rate is 9% and inflation is 5%.

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Macroeconomics

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Interest rates

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Darryn D'SouzaLv10

21 Oct 2020

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Related questions

Which of the following statements is TRUE?

	If the nominal interest rate is 5% and the inflation rate is 2.5%, the real interest rate is 2.5%.
	If the nominal interest rate is 5% and the inflation rate is 4%, the real interest rate is 9%.
	If the real interest rate is 3% and the inflation interest rate is 5%, the nominal interest rate is 2%.
	If the real interest rate is 3% and the nominal interest rate is 5%, the inflation rate is 8%.

taupeeel656

If the real interest rate is 2% and inflation is 5%. Calculate the Nominal Interest rate.

comparing the situation of a nominal rate of 10 percent and an inflation rate of 9 percent with a nominal interest rate of 6 percent and inflation rate of 2 percent, consumers would borrow more in which situation?

a) nominal interest rate of 10 percent since real interest rate is 1 percent

b) nominal interest rate of 6 percent since the real interest rate is 2 percent

c) nominal interest rate of 6 percent since the real interest rate is 4 percent

d) nominal interest rate of 10 percent since the real interest rate is 9 percent

plumsheep807

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Calculate real interest rate if the nominal interest rate is 9% and inflation is 5%.

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