If the Nominal Interest Rate Is 4 Percent and the Real

question 23

Multiple Choice

If the nominal interest rate is 4 percent and the real interest rate is -2.5 percent,then the inflation rate is

• A)-6.5 percent.
• B)-1.5 percent.
• C)1.5 percent.
• D)6.5 percent.

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Definitions:

Identification

The process of recognizing or establishing the identity of a person or object, often through comparison and analysis.

Phytonadione

A form of vitamin K which is used to treat and prevent cases of deficiency or to reverse the effects of blood thinning medications.

Intramuscularly

A method of administering medication deep into the muscles, allowing for the drug to be absorbed into the bloodstream more quickly.

Ampule

A sealed glass capsule containing a liquid, especially a sterile solution for injection.