Final answer:
The inflation rate is found by subtracting the real interest rate from the nominal interest rate; in this case, the inflation rate is 3.3%.
Step-by-step explanation:
The main causes of inflation can be grouped into three broad categories: demand-pull, cost-push, and. inflation expectations. World inflation rate for 2022 was 8.27%, a 4.8% increase from 2021. World inflation rate for 2021 was 3.48%, a 1.55% increase from 2020. World inflation rate for 2020 was 1.93%, a 0.28% decline from 2019. World inflation rate for 2019 was 2.21%, a 0.23% decline from 2018. Venezuela is the country with the highest inflation in the world, with an increase in consumer prices estimated at 360 percent in 2023, according to the latest figures from the International Monetary Fund (IMF), published in October.
The inflation rate is determined by the difference between the nominal interest rate and the real interest rate. The formula to find the inflation rate is: Inflation Rate = Nominal Interest Rate - Real Interest Rate. Therefore, if the nominal interest rate is 5.4% and the real interest rate is 2.1%, the inflation rate can be calculated as: 5.4% - 2.1% = 3.3%%. Hence, the correct answer is A) 3.3%.