If People Expect an Inflation Rate of 3

question 2

Multiple Choice

If people expect an inflation rate of 3.3 per cent, and the real interest rate is 3 per cent, the nominal interest rate equals (approximately)

• A)9.9 per cent.
• B)6.3 per cent.
• C)8.6 per cent.
• D)0.3 per cent.

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Definitions:

Defibrillator

A medical device used to deliver a therapeutic dose of electrical energy to the heart to treat life-threatening cardiac dysrhythmias, especially ventricular fibrillation and ventricular tachycardia.

Low-Density Lipoprotein

Often referred to as "bad" cholesterol, it transports cholesterol particles throughout your body and can build up on the walls of your arteries, potentially leading to heart disease.

Stenotic

Pertaining to a narrowing or constriction of a bodily passage or duct.

Hemorrhagic Stroke

A type of stroke caused by bleeding in the brain, resulting from the rupture of blood vessels, leading to damage in brain tissue.