By Marks buys a one-year German government bond (called a bund) for $400. He receives principal and interest totaling $436 one year later. During the year the CPI rose from 150 to 162. The nominal interest rate on the bond was ________, and the real interest rate was ________.

A. 9%; 1%
B. 36%; 24%
C. 9%; -1%
D. 36%; 12%


Answer: A

Economics

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