If You Want to Earn a Real Interest Rate of 3

question 234

Multiple Choice

If you want to earn a real interest rate of 3% on money you lend and you expect that inflation will be 2%,what nominal rate of interest will you charge?

• A)1%
• B)5%
• C)6%
• D)9%

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Definitions:

Manumission

The formal act of freeing a slave by their owner.

Sierra Leone

A country on the southwest coast of West Africa, known for its history of the transatlantic slave trade and rich cultural heritage.

Former Slaves

Individuals who were once enslaved but gained freedom, often through emancipation or escaping bondage.

Broken Chain

Often symbolizes the disruption or loss of continuity, which can refer to broken social bonds, interrupted traditions, or halted progress.