The Real Rate of Interest Is 3% and the Inflation

question 28

Multiple Choice

The real rate of interest is 3% and the inflation is 4%. What is the nominal rate of interest?

• A) 3%
• B) 4%
• C) 7.12%
• D) 1%

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Definitions:

Janusian

Characterized by the simultaneous consideration of contrary or opposing ideas or concepts, often resulting in novel solutions or insights.

Paradoxical

describes something that seemingly contradicts itself yet might be true, often revealing a deeper truth through its contradiction.

Originality

The quality of being novel or unique, especially in the context of creative works, ideas, or inventions.

Given Population

The specific group of individuals or entities that are the focus of a particular study or statistical analysis.