If the Nominal Interest Rate Is 5% and the Expected

question 25

Multiple Choice

If the nominal interest rate is 5% and the expected inflation rate is 2%, then the expected real rate of interest is:

• A)7%.
• B)3%
• C)2.5%.
• D)-3%.

---

Definitions:

Hearing Measurement

The assessment of an individual's ability to perceive sounds, typically evaluated using audiometric tests.

Turning Up Volume

The action of increasing the sound level of an audio device.

Audio Equipment

Devices used for the recording, amplification, mixing, and reproduction of sound.

Middle Ear Infections

Infections occurring in the air-filled space behind the eardrum that contain tiny vibrating bones, often resulting in pain, fever, and hearing difficulties.