Neco Model Questions Vol1 2019 Economics Question 6
Practice objective / multiple choice question 6 from the 2019 Neco Model Questions Vol1 Economics examination.
Given that the Consumer Price Index (CPI) was \(120\) at the start of 2020, rose to \(126\) at the end of 2020, and further to \(133\) at the end of 2021, a two‑year government bond offered a nominal interest rate of \(12\%\) per annum. Assuming the nominal rate remained constant each year, calculate the average real interest rate per annum over the two years. (Round your answer to one decimal place and express it as a percentage.)
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About This Question
This is Neco Model Questions Vol1 2019 Economics Question 6. It is one of the objective questions from the 2019 Neco Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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