If the Nominal Interest Rate Is 6 Percent and the Rate

question 81

Multiple Choice

If the nominal interest rate is 6 percent and the rate of inflation is 10 percent,then the real interest rate is

• A)-16 percent.
• B)-4 percent.
• C)4 percent.
• D)16 percent.

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Definitions:

Information Processing

The methods by which individuals perceive, analyze, manipulate, store, and recall information.

Organizational Grapevines

Informal channels of communication within an organization, through which rumors and unofficial information are often spread.

Formal Communication

The structured flow of information through the officially recognized channels within an organization.

Grapevine Communication

Informal channels of communication within an organization, often based on rumors or gossip.