If the Real Interest Rate Is 2% and Inflation Rate

question 109

Multiple Choice

If the real interest rate is 2% and inflation rate is 1%, what is the nominal interest rate?

• A)0%.
• B)1%
• C)2%.
• D)3%.

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Definitions:

McClelland

Refers to David McClelland, a psychologist known for his work on motivation theory, which includes the needs for achievement, power, and affiliation.

Need Profiles

Individualized descriptions of the specific needs, desires, and motivations that drive a person's behavior.

Acquired Needs Theory

A theory that suggests individuals develop specific needs over their lifetime through experiences, which include the need for achievement, power, and affiliation.

Need For Achievement

A personal drive to excel or succeed in tasks, often indicative of motivation levels and goal-oriented behavior.