If the Nominal Interest Rate Is 7 Percent and the Real

question 68

Multiple Choice

If the nominal interest rate is 7 percent and the real interest rate is -2.5 percent,then the inflation rate is

• A)-9.5 percent.
• B)-4.5 percent.
• C)4.5 percent.
• D)9.5 percent.

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Definitions:

Clamping

The process of blocking or restricting flow, often referring to the use of devices to stop or regulate the flow of blood during surgery.

Grasping

The action of taking hold of something firmly with the hands or utilizing tools to obtain or gather something.

Cutting

The act of making an incision or dividing materials into parts using a sharp tool.

Dilating/probing

The act of expanding or opening wider a body part, often combined with an examination to explore or investigate.