20
Elimination Tool
Nominal Interest Rate (NIR)
Select one answer
Inflation Rate
Year 1
3.9%
3.4%
Year 2
1.0%
-0.4%
Year 3
2.6%
Above is a chart of inflation rates and nominal interest rates for three consecutive years. Using this chart, which of
the following is a true statement?
1.6%
A the average real interest rate for year 1 to year 3 was 0.97%
