The nominal rate of interest is 10% per annum and inflation rate is 4% per annum in country Alpha. In country Beta, the real rate of interest is 9% per annum and inflation rate is 3% per annum. What are the real rate of interest and nominal rate of interest in countries Alpha and Beta respectively.

Select one:

A. Real rate in Alpha = 5.77% p.a; Nominal rate in Beta = 12.27% p.a.

B. Real rate in Alpha = 6.0% p.a; Nominal rate in Beta = 12.0% p.a.

C. Real rate in Alpha = 14.40% p.a; Nominal rate in Beta = 5.83%p.a.

D. Real rate in Alpha = 14.0% p.a; Nominal rate in Beta = 6.0% p.a

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