Waec Model Questions Vol1 2022 Economics Question 16
Practice objective / multiple choice question 16 from the 2022 Waec Model Questions Vol1 Economics examination.
The consumer price index (CPI) was 150 at the end of 2020 and 158 at the end of 2021. The nominal interest rate on a government bond is 12% per annum. Assuming the CPI will increase by the same percentage in 2022 as it did from 2020 to 2021, calculate the real interest rate for the bond in 2022 using the Fisher approximation (real ≈ nominal - inflation).
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About This Question
This is Waec Model Questions Vol1 2022 Economics Question 16. It is one of the objective questions from the 2022 Waec Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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