If the nominal interest rate is 4.00% and the rate of inflation is 2.25%, what is the real interest rate? 1.75% 4.50% 6.25% 9.00%

The correct answer is 1.75%.

The following formula, known as the Fisher Equation, needs to be applied. It establishes the relationships between real and nominal interests rates, in terms of inflation.

r = i - π

where,

Therefore: r = i - π = 4.00% - 2.25%= 1.75%

1.75%

Explanation:

answer; /// i believe that the correct answer is (a) making presentations;

question 1:

senate and house of representatives

i would try to answer the second question but i’m not 100% positive but i hope i