If the Inflation Premium Is 3 Percent and the Real

question 47

Multiple Choice

If the inflation premium is 3 percent and the real interest on a loan is 4 percent, then the nominal interest rate is

• A)1 percent.
• B)−1 percent.
• C)7 percent.
• D)0.75 percent.

---

Definitions:

Ontario

A province in Canada, characterized by its diverse population and economic activities, and home to the nation's capital, Ottawa, as well as its largest city, Toronto.

Canada's Anti-Spam Legislation

Federal laws in Canada designed to protect Canadians while ensuring that businesses can continue to compete in the global marketplace by regulating the sending of commercial electronic messages.

Infraction

A minor violation of a rule or law, often punishable by a fine rather than imprisonment.