If the inflation rate is 6 percent and the nominal interest rate is 4 percent, then the real interest rate is A. 1.5 percent, which is the ratio of the nominal interest rate to the inflation rate. B. 2 percent, which is the inflation rate minus the nominal interest rate. C. 10 percent, which is the sum of the nominal interest rate and the inflation rate. D. -2 percent, which is the nominal interest rate minus the inflation rate. The real interest rate equals
A. the nominal interest rate plus the inflation rate.
B. the inflation rate minus the nominal interest rate.
C. the nominal interest rate divided by the CPI for a given year.
D. the nominal interest rate minus the inflation rate.
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