If the World Real Interest Rate Were 6% and the Domestic

question 70

Multiple Choice

If the world real interest rate were 6% and the domestic real interest rate in Estonia were 4%,borrowers in Estonia would borrow at the rate of ________ and lenders in Estonia would lend at the rate of ________.

• A) 6%; 6%
• B) 6%; 4%
• C) 4%; 6%
• D) 4%; 4%

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Definitions:

Cumulative Probability

The probability of an event occurring up to a certain point in time or over a range of values, often visualized through a cumulative distribution function.

Monthly Sales

The total volume or dollar value of all sales transactions made by a business within a month, used as an indicator of business performance and market demand.

Probability

The likelihood or chance of a specific outcome occurring, usually expressed as a ratio or percentage.

One-carat Diamond

A measurement unit for diamond weight, equivalent to 200 milligrams.