If the Nominal Interest Rate Is 8 Percent and the Real

question 7

Multiple Choice

If the nominal interest rate is 8 percent and the real interest rate is 3 percent, then the inflation rate equals:

• A)3 percent.
• B)5 percent.
• C)8 percent.
• D)11 percent.

---

Definitions:

Late Majority

A segment of consumers that adopt new products or technologies after the average member of society, often cautious and skeptical about innovations.

Late Adopters

Individuals or groups who adopt new technology, innovations, or ideas after the majority of people have done so, often cautious and skeptical about new innovations.

Innovators

Individuals or entities that introduce new ideas, methods, or products, often pioneering change and progression in their field.

Perceived Risk

The level of risk a consumer believes is associated with purchasing a particular product or service, which can influence decision-making.