If a bank posts a nominal interest rate of 4 percent, and inflation is expected to be 3 percent, then
a. the expected real interest rate is 7 percent.
b. the expected real interest rate is 1 percent.
c. the expected real interest rate is 1.33 percent.
d. the expected real interest rate is 12 percent.
+2
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “If a bank posts a nominal interest rate of 4 percent, and inflation is expected to be 3 percent, then a. the expected real interest rate is ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Home » Business » If a bank posts a nominal interest rate of 4 percent, and inflation is expected to be 3 percent, then a. the expected real interest rate is 7 percent. b. the expected real interest rate is 1 percent. c. the expected real interest rate is 1.