If the Nominal Interest Rate Is 6 Per Cent and the Inflation

question 48

Multiple Choice

If the nominal interest rate is 6 per cent and the inflation rate is 3 per cent, the real interest rate is

• A) 3 per cent.
• B) 6 per cent.
• C) 9 per cent.
• D) 18 per cent.
• E) None of these answers.

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Definitions:

Twenty-Sixth Amendment

An amendment to the United States Constitution that lowered the voting age from 21 to 18.

Voting Age

The minimum legal age at which individuals are entitled to vote in public elections.

Nineteenth Amendment

An amendment to the United States Constitution granting women the right to vote, ratified in 1920.

Women

Adult human females, who have historically been a group advocating for equal rights, representation, and opportunities in societies around the world.