If You Take Out a Mortgage with a Nominal Interest

question 29

Multiple Choice

If you take out a mortgage with a nominal interest rate of 8% and you expect the inflation rate to be 2%,but the actual inflation rate turns out to be 8%,then you end up paying a real interest rate of

• A) 0%.
• B) 1%.
• C) 2%.
• D) 6%.

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Definitions:

CBT Treatment

Cognitive-behavioral therapy; a structured, time-limited therapy that aims to address dysfunctional emotions, behaviors, and cognitions through a goal-oriented, systematic procedure.

Placebo

A substance or treatment with no therapeutic effect, often used in clinical trials as a control to test the efficacy of treatments.

Treatment Outcomes

The results or effectiveness of a therapeutic intervention or medical treatment.

Preferred Treatment

A treatment method considered optimal based on evidence and clinical consensus for a specific condition or population.