Suppose the Annual Nominal Interest Rate Is 10 Percent and the Inflation

question 73

Multiple Choice

Suppose the annual nominal interest rate is 10 percent and the inflation rate is 4 percent. If you deposit $1,000, at the end of the year you'll have earned a real rate of interest of:

• A) 4 percent.
• B) 6 percent.
• C) 10 percent.
• D) 14 percent.

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Definitions:

Carol Gilligan

An American feminist, ethicist, and psychologist best known for her work on ethical community and ethical relationships, and certain subject-object problems in ethics.

Kohlberg's Theory

A theory of moral development proposed by Lawrence Kohlberg, suggesting that people progress through a series of stages of moral reasoning.

Flawed

Having imperfections, defects, or shortcomings.

Piaget's Theory

A framework for understanding child development that focuses on how children acquire knowledge and how their ability to think and reason evolves over time.