If the Nominal Interest Rate Is 6% and the Inflation

question 34

Multiple Choice

If the nominal interest rate is 6% and the inflation rate is 2%,then the real interest rate is

• A)8%.
• B)4%.
• C)3%.
• D)2%.
• E)1%.

---

Definitions:

Cohabitation

The act of living together and having a sexual relationship without being married.

Marital Satisfaction

The state of contentment and fulfillment experienced within a marital relationship, often measured through aspects such as emotional intimacy, communication, and mutual respect.

Trial Marriage

An arrangement in which a couple lives together for a period of time to decide if they want to marry, serving as a test of their compatibility.

Divorce Rates

The statistical measure indicating the number of divorces occurring among the population within a given time period.