The Real Interest Rate Is 3% and the Inflation Rate

question 70

Multiple Choice

The real interest rate is 3% and the inflation rate is 5%. What is the nominal interest rate?

• A) 3%
• B) 5%
• C) 8.15%
• D) 2%

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Definitions:

SOB

Stands for shortness of breath, a symptom in which a person finds it difficult to breathe or catch their breath, often indicative of respiratory or cardiac conditions.

Forearm

The part of the arm between the wrist and the elbow, consisting of two bones, the radius and ulna, along with muscles, nerves, and blood vessels.

Extends

To stretch out, spread, or continue in space or time; in anatomy, it often refers to the motion increasing the angle between body parts.

Muscle Fiber

A single muscle cell, known for its elongated shape, that contracts to produce movement in the body.