If the Real Rate of Return Is 3 Percent and the Inflation

question 78

Multiple Choice

If the real rate of return is 3 percent and the inflation rate is 4 percent, the nominal interest rate is:

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

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Definitions:

Mesosystem

In ecological systems theory, the mesosystem refers to the interactions between different microsystems, like the relationship between a child's home and school environment.

Macrosystem

The largest and most remote set of people and places to a person that still exercises a significant influence on them, according to ecological systems theory.

Exosystem

A term in ecological systems theory referring to the social settings that indirectly influence an individual's development, such as parental workplaces.

Microsystem

In ecological systems theory, the immediate environment in which individuals interact face-to-face, such as family, school, and peer groups.