If the Nominal Interest Rate Is 6% and the Inflation

question 10

Multiple Choice

If the nominal interest rate is 6% and the inflation rate is 9%,then the real interest rate is

• A)-3%.
• B)3%.
• C)6.67%.
• D)15%.

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Definitions:

Pizzas

A popular dish made from flattened dough topped with tomato sauce, cheese, and various other ingredients, baked at a high temperature.

Production

The process of translating raw materials or inputs into finished goods or services through the application of labor, tools, and technology.

Specialize

involves focusing on a particular area of production or service in which a person or country holds a comparative advantage, allowing for increased efficiency and output.

Import

The process of importing products or services from foreign countries for the purpose of selling them domestically.