If the Nominal Interest Rate Is 7 Percent and the Real

question 68

Multiple Choice

If the nominal interest rate is 7 percent and the real interest rate is -2.5 percent,then the inflation rate is

• A)-9.5 percent.
• B)-4.5 percent.
• C)4.5 percent.
• D)9.5 percent.

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Definitions:

Legislation

Laws that have been enacted by a governing body or the process of making or enacting laws.

Total

The complete amount or sum of parts.

Yugoslavia

A former country in Southeast Europe that existed from 1918 to 1992, known for its diverse culture and ethnicity.

Overhead Costs

Expenses associated with running a business that are not directly tied to a specific product or service, such as rent and utilities.