Given a Nominal Interest Rate of 7% and an Inflation

question 90

Multiple Choice

Given a nominal interest rate of 7% and an inflation rate of 2.5%,what is the real interest rate?

• A)4.4%
• B)4.0%
• C)7%
• D)2.5%
• E)9.5%

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Definitions:

Recreational Activities

Leisure pursuits or activities undertaken for enjoyment, relaxation, or pleasure, often during one's free time.

Taking Care Of Children

The activities and responsibilities involved in ensuring the health, safety, and emotional well-being of a child.

Launched

To set in motion or initiate something, such as a product, project, or spacecraft, into action or into the market.

Balance

The ability to maintain a body's center of gravity within its base of support, vital for everyday activities and sports.