Skip to main content

My Courses

Calculators AI Tools Study Prep Blog Study Prep Home

Sacrifice Ratio

21. Revisiting Inflation, Unemployment, and Policy / Sacrifice Ratio / Problem 1

Problem 1

If the real interest rate is 4% and the expected inflation rate is 3%, what is the nominal interest rate?

A

6%

B

3%

C

1%

D

7%