The Consumer Price Index Was 120 in 2013 and 126

question 115

Multiple Choice

The consumer price index was 120 in 2013 and 126 in 2014.The nominal interest rate during this period was 8 percent.What was the real interest rate during this period?

• A)3 percent
• B)2 percent
• C)3.3 percent
• D)12.8 percent

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Definitions:

Average Costs

The total costs divided by the total output produced, a measure of cost efficiency for production.

Social Welfare

A concept concerning the well-being, health, and economic security of society as a whole.

Synergies

The increased effectiveness or efficiencies created when two or more elements or companies work together.

Public Ownership

The ownership of industries and assets by the government or state, as opposed to private individuals or corporations.