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Business, 15.01.2020 20:31 jessec27019

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.

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