If the Real Interest Rate Is 3% and the Expected

question 43

Multiple Choice

If the real interest rate is 3% and the expected inflation rate is 6%,then the nominal interest rate is

• A) 0.5%.
• B) 2%.
• C) 3%.
• D) 9%.

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Definitions:

Comparative Evaluation

The process of comparing one set of data, elements, or situations with another to assess its value or performance in relation to a standard or another entity.

Ranking Method

A method of evaluating employees that ranks them from best to worst on some trait.

Forced Distributions

A performance evaluation method where employees are ranked and rated according to a predetermined distribution curve, often to identify top performers, average performers, and underperformers.

360-Degree Performance

A method of performance assessment where an employee is evaluated by feedback from supervisors, peers, subordinates, and sometimes clients.