If You as a Lender Want an Increase in Purchasing

question 51

Multiple Choice

If you as a lender want an increase in purchasing power of 4 percent from making a loan and you set the nominal interest rate at 9 percent, then your

• A)real rate of interest is 13 percent.
• B)expected rate of inflation is 5 percent.
• C)expected rate of inflation is 13 percent.
• D)real rate of interest is 36 percent.

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Definitions:

Productive Vocabulary

The set of words an individual can produce or use actively in communication, as opposed to words recognized passively.

Words

Basic units of language or speech that convey meaning and can be spoken or written.

Telegraphic Speech

A developmental stage in children's language acquisition where sentences are formed with mostly nouns and verbs, omitting unnecessary words.

Overregularization

A language-learning error made by children, in which they apply regular grammatical rules to words that require irregular forms.