If the Nominal Rate of Interest Is 6

question 288

Multiple Choice

If the nominal rate of interest is 6.5% and the inflation rate is 3.0%,what is the real rate of interest?

• A)-9.5%
• B)-3.5%
• C)1.5%
• D)3.5%
• E)9.5%

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Definitions:

Dementia

A category of brain diseases that cause a long-term and often gradual decrease in the ability to think and remember, significantly affecting an individual's daily functioning.

Sensory Losses

The partial or total loss of one or more of the senses, such as hearing, sight, taste, touch, and smell.

Hearing Nuances

The ability to detect subtle variations in sound, often important in language acquisition, music appreciation, and social interactions.

Speech

The verbal means of communicating or expressing thoughts, ideas, or feelings.