The Nominal Interest Rate Is 4

question 307

Multiple Choice

The nominal interest rate is 4.5 percent and the inflation rate is 0.9 percent. What is the real interest rate?

• A)5.4 percent
• B)5 percent
• C)4.1 percent
• D)3.6 percent

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Definitions:

Disadvantaged Groups

Populations or communities that experience a lower quality of life or diminished opportunities for success and wellbeing due to social, economic, or political barriers.

Similarly Deprived

Describes individuals or groups who lack similar resources, rights, or privileges, often leading to a shared disadvantage.

Group Polarization

The process where prevailing opinions or beliefs within a group intensify after the group engages in discussion.

Normative Social Influence

The influence of other people that leads us to conform in order to be liked and accepted by them.