If the Nominal Interest Rate Is 8 Per Cent and the Current

question 43

Multiple Choice

If the nominal interest rate is 8 per cent and the current inflation rate is 3 per cent, approximately what is the real interest rate?

• A)5 per cent
• B)11 per cent
• C)8 per cent
• D)3 per cent

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Definitions:

Reduction

A chemical reaction involving the gain of electrons or the decrease in oxidation state by a molecule, atom, or ion.

Oxidizing Agent

A substance that has the ability to oxidize other substances, meaning it gains electrons in the process.

Reagents

Substances or compounds that are added to a system in order to bring about a chemical reaction or to see if a reaction occurs.

NaOCl

Sodium hypochlorite, commonly known as bleach, a chemical widely used as a disinfectant and bleaching agent.