If the CPI Is 170 at the Beginning of the Year

question 2

Multiple Choice

If the CPI is 170 at the beginning of the year and 181 at the end, and a bank is paying a nominal interest rate of 6 per cent, we see that

• A) the real interest rate is positive and is larger than 1 per cent.
• B) the real interest rate is equal to zero.
• C) the real interest rate is positive and is less than 1 per cent.
• D) the real interest rate is negative.
• E) the nominal interest rate is negative.

---

Definitions:

Nonstandard Hours

Work schedules that fall outside the traditional 9 am to 5 pm workday, including evening, night, and weekend shifts.

Young Grandchildren

Refers to the young descendants of one’s children, typically under the age of 12.

Terminal Illness

A disease or condition that is incurable and expected to lead to the person's death.

Hospice Trajectory

The path or course of care designed to provide comfort and support to patients and their families during the final phase of a terminal illness, focusing on quality of life rather than curative treatment.