If the Nominal Interest Rate Is 5 Percent,and the Rate

question 107

Multiple Choice

If the nominal interest rate is 5 percent,and the rate of inflation is 3 percent,then the real interest rate is equal to

• A)2 percent.
• B)0.6 percent.
• C)1.7 percent.
• D)15 percent.

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Definitions:

Parietal Pericardium

The outer fibrous layer of the pericardium, which surrounds the heart and roots of its major blood vessels.

Lobes

Divisions or sections of an organ separated by fissures or grooves, commonly referred to in the brain, lungs, and liver.

Internal Nares

Openings inside the nose that connect the nasal cavity to the back of the throat.

Choanae

The internal nostrils located at the back of the nasal cavity in vertebrates, connecting the nasal passages to the throat.