If the Nominal Interest Rate Is 4  Percent and Expected

question 133

Multiple Choice

If the nominal interest rate is 4  percent and expected inflation rate is 1.6 percent, the real interest rate equals

• A)2.4 percent.
• B)5.6 percent.
• C)-2.4 percent.
• D)8 percent.

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Definitions:

Passive

Characterizes a lack of action or inactivity, often referring to behaviors or attitudes where individuals do not actively engage or assert themselves in situations.

Spontaneous

Occurring naturally, without being planned or premeditated, often resulting from a sudden impulse or inclination.

Nonprogrammed

Nonprogrammed decisions refer to responses made to situations that are unique, poorly defined and unstructured, and for which pre-specified processes are not applicable.

Role Ambiguity

A situation where an employee lacks clear understanding of their job duties, responsibilities, or expectations, leading to confusion and stress.