You Lend $5,000 to a Friend for One Year at a Nominal

question 258

Multiple Choice

You lend $5,000 to a friend for one year at a nominal interest rate of 10%.The CPI over that year rises from 180 to 190.What is the real rate of interest you will earn?

• A)0%
• B)4.4%
• C)5.5%
• D)5.8%

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Definitions:

Subordination

Involves a social or organizational arrangement that places certain groups or individuals in lower or inferior ranks compared to others.

Recognition

The acknowledgment or validation of someone’s status, achievements, rights, or identity by others or by society.

Intersectionality

An analytical paradigm that scrutinizes how intersecting social identities and their related systems of oppression, domination, or discrimination shape the lives and experiences of individuals.

Matrix of Domination

A sociological paradigm that explains issues of oppression that deal with race, class, gender, sexuality, etc., emphasizing their interconnectivity.