If the Nominal Interest Rate Is 8 Percent and the Rate

question 15

Multiple Choice

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

• A)-5 percent.
• B)1.67 percent.
• C)5 percent.
• D)11 percent.

---

Definitions:

Transactional Analysis

A psychoanalytic theory and method of therapy wherein social transactions are analyzed to understand behavior.

Emotional Pattern

The recurring or habitual way in which a person experiences and expresses emotions in various situations.

Emotional Style

Refers to consistent ways in which individuals experience, express, and manage emotions.

Capitulating

Surrendering or giving in to an opponent or an argument after resisting.