If the Nominal Interest Rate Is 8 Percent and the Rate

question 197

Multiple Choice

If the nominal interest rate is 8 percent and the rate of inflation is 3 percent,then the real interest rate is

• A)11 percent.
• B)24 percent.
• C)5 percent.
• D)3.75 percent.

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Definitions:

Resources

Resources are materials, energy, services, and other assets that can be utilized to produce goods and meet needs or wants, including natural, human, and capital resources.

Sockeye Salmon

A species of salmon found in the North Pacific Ocean, highly valued for its meat.

Market Price

The current price at which a good or service can be bought or sold in a given market.

ITQs

Individual Transferable Quotas, a fishery management tool that allocates a certain amount of a fish stock or species to individuals or companies.