The Following Data Are for Econia During 2010

question 17

Multiple Choice

The following data are for Econia during 2010. The nominal GDP was $440 billion, the inflation rate was 2%, the nominal interest rate was 6.5%, and the nominal GDP growth rate was 3%. What was Econia's real interest rate during 2010?

• A) 3.5%
• B) 1%
• C) 8.5%
• D) 4.5%

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Definitions:

Political Influence

The power to affect governmental actions, policies, or decision making through various means, including lobbying, advocacy, or public pressure.

Wealth

An abundance of valuable financial assets, resources, or material possessions.

Freedom of the Press

The right to publish and disseminate information, opinions, and news without censorship or restraint from the government.

Eighteenth Century

The period from 1701 to 1800, marked by significant historical, cultural, and scientific developments worldwide.