You Lend $5,000 to a Friend for One Year at a Nominal

question 258

Multiple Choice

You lend $5,000 to a friend for one year at a nominal interest rate of 10%.The CPI over that year rises from 180 to 190.What is the real rate of interest you will earn?

• A)0%
• B)4.4%
• C)5.5%
• D)5.8%

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Definitions:

Desired Behaviors

Specific actions or reactions that are sought after or encouraged, often within a social or organizational context.

Team Members

Individuals who are part of a group working together towards a common goal or project.

Referent Power

The ability to influence others based on their admiration, respect, or desire to identify with the influencer.

Leader's Approval

The endorsement, positive assessment, or support given by a leader to their subordinate or their decision.