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If the nominal interest rate is 8 percent and rate of inflation is 5.5 percent, then the real interest rate is A. 13.5 percent.B. 12 percent.C. 2.5 percent.D. -2.5 percent.Part 2Cedar Valley Furniture uses 5 workers working 8 hours to produce 80rocking ch…
Real Interest Rate = Nominal Interest Rate – Inflation(Expected or Actual) Real Interest Rate = 8 – 5.5 =2.5C. 2.5 percent….
80 rocking chairs / 8 hours / 5 workers = 2 chairs / worker /hrA. 2 chairs per hour.
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