• Card 2 / 145: 1. If a lender expects an inflation rate of 5 percent and asks for a nominal interest rate of 10 percent, then the lender expects to earn a real interest rate of:
    A) 15 percent.
    B) 10 percent.
    C) 5 percent.
    D) 2 percent.

    Answer:
    C) 5 percent.

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Macroeconomics MCQ

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