Neco Model Questions Vol1 2021 Economics Question 17
Practice objective / multiple choice question 17 from the 2021 Neco Model Questions Vol1 Economics examination.
The Consumer Price Index (CPI) was \(150\) in 2020 and rose to \(165\) in 2021. A savings account offers a nominal interest rate of \(12\%\) per annum. Using the exact Fisher equation, calculate the real interest rate for 2021 and state by how many percentage points it falls short of the central bank's target real rate of \(5\%\). Give your answer rounded to two decimal places.
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About This Question
This is Neco Model Questions Vol1 2021 Economics Question 17. It is one of the objective questions from the 2021 Neco Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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