If the Nominal Interest Rate Is 5 Percent and the Rate

question 43

Multiple Choice

If the nominal interest rate is 5 percent and the rate of inflation is 9 percent,then the real interest rate is

• A)-4 percent.
• B)-0.44 percent.
• C)4 percent.
• D)14 percent.

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Definitions:

Hypothalamus

A region of the brain that plays a crucial role in many essential functions, including hormone release, regulation of body temperature, and maintenance of daily physiological cycles.

Pituitary Gland

Gland located in the brain that secretes human growth hormone and influences all other hormone-secreting glands (also known as the master gland).

Pineal Gland

Endocrine gland located near the base of the cerebrum; secretes melatonin.

Hierarchically

In a way that is arranged in order of rank, importance, or authority, often forming a hierarchy.