Calculate the Real Rate of Interest If the Nominal Rate

question 79

Multiple Choice

Calculate the real rate of interest if the nominal rate of interest is 8.65% and the inflation rate is 2.24%.

• A)9.50%
• B)8.49%
• C)7.38%
• D)6.27%

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Definitions:

Appropriateness

The quality of being suitable or proper in a given context or situation.

Appropriateness

The quality of being suitable or proper in a given situation or context.

Manipulation

The act of controlling or influencing someone or something to do what one wants, often in a deceitful or unfair way.

Persuasion Process

The method of influencing someone’s beliefs, attitudes, intentions, motivations, or behaviors through communication and argumentation.