If the Inflation Rate Is 5 Percent and the Real

question 80

Multiple Choice

If the inflation rate is 5 percent and the real interest rate is 2.5 percent, then the nominal interest rate is

• A) -2.5 percent.
• B) 2 percent.
• C) 7.5 percent.
• D) 2.5 percent.
• E) 10 percent.

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Definitions:

Phonetic

Concerning the sounds of human speech and the system of producing and describing these sounds.

Syntactic

Pertains to the organization of words and phrases to construct grammatically correct sentences within a language.

Aphasic

Relating to or affected by aphasia, a condition characterized by the loss of the ability to understand or express speech, caused by brain damage.

Lateralized

Refers to the specialization of brain functions in either the left or right hemisphere of the brain.