Post Utme Esut 2019 Economics Question 19

Practice objective / multiple choice question 19 from the 2019 Post Utme Esut Economics examination.

Post Utme Esut 2019 Economics Objective / Multiple Choice
Question 19 POST_UTME_ESUT • 2019 • ECONOMICS • objective

A country's inflation rate is 10% and its nominal interest rate is 12%. What is the likely effect on the country's real interest rate?

Answer Options

A. Real interest rate increases
Correct Answer B. Real interest rate decreases
C. Real interest rate remains unchanged
D. Real interest rate fluctuates
Correct Answer
B
Correct Option:
Real interest rate decreases

About This Question

This is Post Utme Esut 2019 Economics Question 19. It is one of the objective questions from the 2019 Post Utme Esut Economics examination.

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