If the Nominal Interest Rate Is 5 Percent and There

question 211

Multiple Choice

If the nominal interest rate is 5 percent and there is a deflation rate of 3 percent,what is the real interest rate?

• A)8 percent
• B)2 percent
• C)15 percent
• D)1.7 percent

---

Definitions:

Pop Up

A form of temporary retail space or advertisement that appears in unexpected places for a short period of time.

Endorser

An individual or entity supporting or promoting a product, service, or idea, often to influence public opinion or consumer behavior.

Misleading Advertising

Describes promotional activities that deliberately deceive or create a false impression about the nature, characteristics, or benefits of a product or service.

Lanham Act

United States legislation that provides trademark protection and combats misleading advertising and unfair competition.