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Anettt [7]
2 years ago
8

If the nominal interest rate is 18 percent and the real interest rate is 8 percent, the inflation rate is

Business
1 answer:
Kamila [148]2 years ago
6 0

Based on the nominal interest rate and the real interest rate, the inflation rate must be 10%.

<h3>What is the inflation rate?</h3>

The inflation rate is the difference between the nominal rate and the real interest rate.

It can be found as:

= Nominal rate - Real interest rate

Solving gives:

= 18% - 8%

= 10%

In conclusion, the inflation rate is 10%.

Find out more on inflation rates at brainly.com/question/25877453.

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