If the Nominal Interest Rate Is 5 Percent and the Rate

question 43

Multiple Choice

If the nominal interest rate is 5 percent and the rate of inflation is 9 percent,then the real interest rate is

• A)-4 percent.
• B)-0.44 percent.
• C)4 percent.
• D)14 percent.

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Definitions:

Blues Festival

A music festival focusing specifically on blues music, showcasing various artists and bands in the genre.

Nonrival

A characteristic of a good or service where one person's consumption does not diminish the ability of another to consume it as well.

Excludable

A property of a good or service that allows its owner to prevent others from using it without permission.

Artificially Scarce Good

A good that has its availability limited by design or through artificial means, rather than through natural scarcity.