11. If the interest rate on a loan is 5 percent and the inflation rate is 3 percent, the real interest rate is A. 8 percent. B. 2 percent. C. -2 percent. D. -8 percent.D. -8

To calculate the real interest rate, we need to subtract the inflation rate from the nominal interest rate.<br /><br />Given information:<br />- Nominal interest rate = 5%<br />- Inflation rate = 3%<br /><br />Real interest rate = Nominal interest rate - Inflation rate<br />Real interest rate = 5% - 3%<br />Real interest rate = 2%<br /><br />Therefore, the correct answer is B. 2 percent.