The Nominal Interest Rate Is 7 Percent and the Expected

question 92

Multiple Choice

The nominal interest rate is 7 percent and the expected inflation rate is 4 percent.The real interest rate is:

• A)10 percent.
• B)-2 percent.
• C)3 percent.
• D)4 percent.

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Definitions:

Green Light

In general use, to give permission or approval to proceed with a project, idea, or situation.

General Adaptation

General adaptation refers to an organism's response to stressors in its environment in an attempt to restore homeostasis.

Spontaneous Recovery

The reappearance of a previously extinguished conditioned response after a period of no exposure to the conditioned stimulus.

Discrimination

The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.