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- Subject
- Inflation & Productivityeconomics-mcqs › inflation-productivity
- Published
- 1 Jun 2019
- Last updated
- 28 May 2026
Given an inflation rate of 8% and a real interest rate of 3%, what is the nominal interest rate?
Multiple choice question for Inflation & Productivity. Select an option, then review the explanation below.
Explanation
The nominal interest rate is calculated by adding the real interest rate to the inflation rate. Here, 3% (real rate) + 8% (inflation) equals 11%, which corresponds to option C.
More Inflation & Productivity MCQs
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- 3.What is the effect of a rise in production costs on the economy?
- 4.What is the likely effect on the economy when injections into it increase?
- 5.Which of the following can trigger demand-pull inflation?