If the Nominal Interest Rate Is 4 Percent and the Inflation

question 75

Multiple Choice

If the nominal interest rate is 4 percent and the inflation rate is 7 percent, then the real interest rate equals

• A) -3 percent.
• B) +3 percent.
• C) -4 percent.
• D) -7 percent.
• E) +11 percent.

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Definitions:

Ray-finned Fish

A diverse group of fish characterized by their fins being supported by bony spines or rays, which is distinct from the fleshy fins of lobe-finned fish.

Vertebral Column

Backbone.

Tailless

Lacking a tail, characteristic of certain animals either through evolutionary adaptation or a specific genetic condition.

Nonhuman Primates

Primates other than humans, including monkeys, apes, and prosimians, characterized by their complex behaviors and varied habitats.