Assume the Consumer Price Index Was 225 in 2006 and 234

question 132

Multiple Choice

Assume the consumer price index was 225 in 2006 and 234 in 2007.The nominal interest rate during this period was 6.5 percent.What was the real interest rate during this period?

• A)2.5 percent
• B)4.0 percent
• C)7.5 percent
• D)10.5 percent

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Definitions:

Endocrine System

The body system that helps regulate metabolic activities; consists of ductless glands and tissues that secrete hormones.

Nervous System

The system composed of neurons and their extensions that is responsible for sending signals throughout the body.

Second Messenger

Intracellular signaling molecules released by the cell to trigger physiological changes in response to external signals.

Hormone Mechanism

The method by which hormones act to regulate various bodily functions, involving synthesis, secretion, and cellular interaction.