If You Borrow Money at a 9% Nominal Rate and the Inflation

question 69

Multiple Choice

If you borrow money at a 9% nominal rate and the inflation rate is 2%,what is the real interest rate on the loan?

• A) 9.0%
• B) 11.0%
• C) 7.0%
• D) 2.0%
• E) 4.5%

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Definitions:

Random Digit Dialing

A method used by researchers to select people for participation in telephone surveys by randomly generating telephone numbers.

National Samples

Are representative selections of individuals or entities drawn from a country's population, often used in surveys or research to make inferences about the general population.

College Education

Higher education pursued after the completion of secondary education, typically in a college or university, offering degrees in various fields.

Gender Gap

The difference in attitudes or behaviors between women and men, often observed in voting patterns and political opinions.