If the Nominal Interest Rate Is 7

question 115

Multiple Choice

If the nominal interest rate is 7.5 percent and the rate of inflation is -2.5 percent, then the real interest rate is

• A)-10 percent.
• B)-5 percent.
• C)5 percent.
• D)10 percent.

---

Definitions:

Nutritional Levels

Measures or categories indicating the nutritional content and quality of food or diet.

Eating Disorder

A mental disorder characterized by abnormal or disturbed eating habits that negatively affect a person's health.

Self-Induced Vomiting

The act of voluntarily triggering the reflex to vomit, often associated with eating disorders or to eliminate consumed toxins.

Laxatives

Medications or substances that aid in relieving constipation by promoting the evacuation of bowel contents.