If a Person Earns an 8 Percent Nominal Rate of Interest

question 39

Multiple Choice

If a person earns an 8 percent nominal rate of interest on his savings account in a year when inflation is 9 percent, the person's real rate of interest is

• A)-1 percent.
• B)1 percent.
• C)8 percent.
• D)9 percent.

---

Definitions:

Trust

The firm belief in the reliability, truth, ability, or strength of someone or something.

Poorly Done

Executed or performed in a manner that fails to meet the required or expected standards.

Resentment

A feeling of displeasure or indignation at some act, remark, or person regarded as causing injury or insult.

Proxemics

The study of how humans use space in communication, including the physical distance between individuals in social, personal, and public spaces.