If the Nominal Interest Rate Is 6 Percent and the Rate

question 179

Multiple Choice

If the nominal interest rate is 6 percent and the rate of inflation is 2 percent,then the real interest rate is

• A) -4 percent.
• B) 2 percent.
• C) 4 percent.
• D) 8 percent.

---

Definitions:

45-degree Angle

A precise measurement where two lines or surfaces meet to form an angle that is half the size of a right angle, often used in geometry and various applications to denote a moderate inclination.

15-degree Angle

A measure of rotation that equals one-sixteenth of a complete circle's rotation; it's a small acute angle commonly used in geometry.

60-degree Angle

An angle measuring 60 degrees, often associated with equilateral triangles where all three interior angles are equal.

Productive Cough

A cough that expels mucus or phlegm from the respiratory tract, assisting in clearing the airways.