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If the nominal interest rate is 4 percent and the inflation rate is 6 percent, then the real interest rate is a.-4 percent. b.-2 percent. c.0 percent. d.2 percent.

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abidemiokin

The real interest rate given the nominal and inflation rate is -2 percent

How to calculate the real interest

The formula for calculating real interest given the nominal and inflation rate is expressed as:

Real interest rate ≈ nominal interest rate − inflation rate

Given the following

Real interest = 4%

inflation rate = 6%

Substituting into the formula

Real interest rate = 4% -  6%

Real interest rate = -2%

Then the real interest rate given the nominal and inflation rate is -2 percent

Learn more on real interest here: https://brainly.com/question/25545513

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