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 4 percent.
C) Nominal interest rate of 10 percent since the real interest rate is 9 percent.
D) Nominal interest rate of 6 percent since the real interest rate is 2 percent.
B) Nominal interest rate of 6 percent since the real interest rate is 4 percent.
C) Nominal interest rate of 10 percent since the real interest rate is 9 percent.
D) Nominal interest rate of 6 percent since the real interest rate is 2 percent.
ANSWER:
A) Nominal interest rate of 10 percent since real interest rate is 1 percent.