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.