Post Utme Eksu 2017 Economics Question 40

Practice objective / multiple choice question 40 from the 2017 Post Utme Eksu Economics examination.

Post Utme Eksu 2017 Economics Objective / Multiple Choice
Question 40 POST_UTME_EKSU • 2017 • ECONOMICS • objective

A central bank has the following monetary policy rule: i = 2 + 0.5\( P - 2 \), where i is the interest rate and P is the inflation rate. If the inflation rate is 3%, what is the interest rate?

Answer Options

A. 4%
Correct Answer B. 5%
C. 6%
D. 7%
Correct Answer
B
Correct Option:
5%

About This Question

This is Post Utme Eksu 2017 Economics Question 40. It is one of the objective questions from the 2017 Post Utme Eksu Economics examination.

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