Question

The current inflation rate is 2%, and the nominal interest rate on a savings account is 1.3%. What is the real interest rate on the savings account? Select the correct answer. -2.0% 0 -0.7% O 0.7% O 1.3%​

Answer 1

Real interest rate = nominal ir - inflation
X= 1.3% - 2%
X = -0.7%

Answer 2

Answer:

-0.7

Step-by-step explanation:

-0.7