Gce Model Questions Vol1 2022 Economics Question 8
Practice objective / multiple choice question 8 from the 2022 Gce Model Questions Vol1 Economics examination.
The Consumer Price Index (CPI) was 120 in 2022 and rose to 126 in 2023. The government expects the CPI to reach 138 by the end of 2025. A bank offers a nominal interest rate that is 2 percentage points higher than the expected average annual inflation rate over the period 2023‑2025. What nominal interest rate does the bank offer? Express your answer as a percentage rounded to two decimal places.
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About This Question
This is Gce Model Questions Vol1 2022 Economics Question 8. It is one of the objective questions from the 2022 Gce Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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