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MMLU-Pro / 7543 / Suppose that the interest rate has risen from 8% to 10% over a three year period…

Problem

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question

Suppose that the interest rate has risen from 8% to 10% over a three year period while inflation has risen from 3% to 5%. What has happened to the real interestrate.

category

economics

options

  1. Real interest rate decreases by 2%
  2. Real interest rate more than doubles
  3. Real interest rate decreases
  4. Real interest rate increases
  5. Real interest rate is halved
  6. Inflation rate is constant
  7. Inflation rate overtakes the interest rate
  8. Real interest rate remains constant
  9. The nominal interest rate is constant
  10. Real interest rate increases by 2%

src

stemez-Economics

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