Which of the Following Statements Is Correct About the Relationship

question 107

Multiple Choice

Which of the following statements is correct about the relationship between the nominal interest rate and the real interest rate?

• A)The real interest rate is the nominal interest rate times the rate of inflation.
• B)The real interest rate is the nominal interest rate minus the rate of inflation.
• C)The real interest rate is the nominal interest rate plus the rate of inflation.
• D)The real interest rate is the nominal interest rate divided by the rate of inflation.

---

Definitions:

Preschooler

A child typically between the ages of 3 and 5 years old who is in the developmental stage before entering formal schooling.

Psychosocial Stage

Stages of psychological and social development postulated by Erik Erikson, through which an individual progresses throughout their lifetime.

Identity Versus Identity Confusion

Erikson’s fifth developmental stage, which individuals experience during the adolescent years. At this time, adolescents examine who they are, what they are all about, and where they are going in life.

Initiative Versus Guilt

A stage in Erickson's psychosocial development theory where children learn to exercise independence and initiative, but may feel guilt when unsuccessful.