This Question: 1 pt 17 of 38 (10 complete) his Test 50 pts possible The interest

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This Question: 1 pt 17 of 38 (10 complete) his Test 50 pts possible The interest rate is 14 percent a year in Nigeria and 0.3 percent a year in Germany. The inflation rate is 9 percent a year in Nigeria and 0.1 percent a year in Germany Calculate the real interest rate in Nigeria and Germany. >>Answer to 1 decimal place >>If your answer is negative, include a minus sign. If your answer is positive, do not include a plus sign The real interest rate in Nigeria is percent a year. The real interest rate in Germany is percent a year.

Explanation / Answer

Answer

real interest=nominal interest rate- inflation

the real interest rate of Nigeria=14-9=5.0%

the real interest rate in Germany =0.3-0.1=0.2%

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