Suppose the Consumer Price Index Was 184 in Year 1

question 204

Multiple Choice

Suppose the consumer price index was 184 in Year 1 and 198.17 in Year 1. The nominal interest rate during this period was steady at 5.8 percent. What was the real interest rate during this period?

• A)0.4 percent
• B)1.2 percent
• C)-1.9 percent
• D)-2.6 percent

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Definitions:

Radio Frequency Identification

A technology that uses electromagnetic fields to automatically identify and track tags attached to objects.

Distribution Centers

Facilities that store and distribute products and materials to retail locations, wholesalers, or directly to consumers, acting as a pivotal point in the supply chain.

Universal Product Codes

are unique 12-digit numbers used to identify retail products worldwide, facilitating the tracking, inventory, and sales processes.

Contractual Marketing System

A network of agreements between various parties in the distribution channel to promote, distribute, and sell products.