If the Nominal Interest Rate Is 8 Percent and the Inflation

question 216

Multiple Choice

If the nominal interest rate is 8 percent and the inflation rate is 3 percent, then the real interest rate is

• A)-5 percent.
• B)11 percent.
• C)5 percent.
• D)3 percent.

---

Definitions:

Reliability

The degree to which an assessment tool produces stable and consistent results over time.

Career Counseling

A professional service aimed at helping individuals understand their skills, interests, and values to make informed career decisions and navigate career changes.

Construct

An abstract concept or idea that is used to understand and assess aspects of the physical or social world.

Objective Measures

Quantifiable indicators used to assess performance, attributes, or outcomes in a non-biased manner.