 
                 
                InterviewSolution
 Saved Bookmarks
    				| 1. | people expect an inflation rate 5 percent and the real interest rate is positive. then tge nominal interest rate will be?  | 
| Answer» terest rate ≈ NOMINAL interest rate − inflation rate. To find the real interest rate, we take the nominal interest rate and subtract the inflation rate. For example, if a LOAN has a 12 PERCENT interest rate and the inflation rate is 8 percent, then the real RETURN on that loan is 4 percent. | |