If the Nominal Interest Rate Is 8 Percent and Rate

question 145

Multiple Choice

If the nominal interest rate is 8 percent and rate of inflation is 5.5 percent,then the real interest rate is

• A)13.5 percent.
• B)12 percent.
• C)2.5 percent.
• D)-2.5 percent.

---

Definitions:

Variable

An attribute or characteristic that can assume different values or vary among individuals, entities, or across situations.

Grounded Theory

A research methodology used in social sciences to construct theories based on data systematically gathered and analyzed through a process of comparative analysis.

Alienation

A state within social interactions characterized by minimal integration or shared beliefs, alongside significant separation or detachment between people, or between a person and a collective.

Abstract Concept

A theoretical idea or notion that is not physically tangible but exists in thought or as an idea, representing complex ideas or principles.