The Nominal Interest Rate Is 3

question 336

Multiple Choice

The nominal interest rate is 3.5 percent and the inflation rate is 2 percent. What is the real interest rate?

• A)7 percent
• B)5.5 percent
• C)1.75 percent
• D)1.5 percent

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Definitions:

Serotonin

A neurotransmitter that affects mood, appetite, sleep, and other cognitive and physiological processes.

Glutamate

A major neurotransmitter in the brain that plays an important role in learning and memory.

Excitatory Transmitter

A type of neurotransmitter that promotes the firing of neurons, facilitating brain and body activities.

GABA

Gamma-Aminobutyric Acid, a main inhibitory neurotransmitter in the mammalian central nervous system, playing a key role in reducing neuronal excitability throughout the nervous system.