Question

if the nominal interest rate is 4.00% and the rate of inflation is 2.25%, what is the real interest rate? 1.75% 4.50% 6.25% 9.00%

Answer 1

Answer:

The real interest rate is 1.75%

Explanation: This is the correct answer on edg 2020 (just took the quiz) ^-^

Answer 2

Answer:

If the nominal interest rate is 4.00% and the rate of inflation is 2.25%, the real interest rate would be 1.75%

Explanation:

I completed the quiz on Edge as well. This is the correct answer!