Calculate the Real Rate of Interest If the Nominal Rate

question 17

Multiple Choice

Calculate the real rate of interest if the nominal rate of interest is 9.3% and the inflation rate is 3.25%.

• A)7.86%
• B)6.86%
• C)5.86%
• D)4.86%

---

Definitions:

Primary Appraisal

The initial evaluation process where an individual assesses the significance of a stressor to determine whether it is a threat.

Threatening Event

An occurrence that poses a danger or harm, potentially triggering stress or anxiety.

Course of Action

A plan or strategy intended to accomplish a specific goal, often involving a series of steps or procedures to be followed.

Predictability

Predictability refers to the extent to which future events or behaviors can be accurately forecasted based on current or past data.