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Economists forecast the following CPI Index and nominal interest rates for the next four years:

Year CPI Index Nominal Interest Rates
1 100 -
2 110 12%
3 120 7%
4 130 8%

What is the real interest rate that you will get for year 2?

A

1.8%

B

2%

C

2.2%

D

2.18%

Accuracy 0%
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