In Which Case Below Is the Real Interest Rate the Highest

question 253

Multiple Choice

In which case below is the real interest rate the highest?

• A)the nominal interest rate = 4% and inflation = 3%
• B)the nominal interest rate = 3% and inflation = 1%
• C)the nominal interest rate = 2% and inflation = -2%
• D)the nominal interest rate = 1% and inflation = -4%

Comprehend the concept of economies of scale.

Understand historical shifts in production methods and their impact on business size and structure.

Describe the interdependency between small and large businesses.

Recognize the significant representation of small businesses in the service sector.