Answer:
The correct answer is
D. -2 percent, which is the nominal interest rate minus the inflation rate.
The real interest rate equals D. the nominal interest rate minus the inflation rate.
Explanation:
The real interest rate formula is
Real interest rate =Nominal interest rate - Inflation rate
Inflation rate=6 %
Nominal interest rate = 4%
Real rate of return =4% - 6 %
Real rate of return = -2%
D. -2 percent, which is the nominal interest rate minus the inflation rate.