This video is very helpful for those who are preparing Economics for any competitive exam like Net, PGT, SSC etc.

3. In 2015 the nominal rate of
interest in country was 6%, and
the inflation rate then was 1.5%.
So real rate of interest in 2015 was
Options:
1) 7.50% 2) 4.50%
3) 4% 4) 0.25%

4. Formula
Real Rate of Interest = Nominal Interest Rate – Inflation
Rate
= 6% - 1.5%
= 4.50 %
Given Information
Nominal Rate of Interest= 6%
Inflation rate = 1.5%
Real Rate of Interest = ?

5. In 2015 the nominal rate of
interest in country was 6%, and
the inflation rate then was 1.5%.
So real rate of interest in 2015
was
Options:
1) 7.50% 2) 4.50%
3) 4% 4) 0.25%

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