If the Nominal Rate of Interest Is 6

question 288

Multiple Choice

If the nominal rate of interest is 6.5% and the inflation rate is 3.0%,what is the real rate of interest?

• A)-9.5%
• B)-3.5%
• C)1.5%
• D)3.5%
• E)9.5%

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Definitions:

Company

A legal entity formed by a group of individuals to engage in and operate a business commercially or industrially.

Technological Innovation

The introduction of new technologies or the improvement of existing technologies to create new products, services, or processes.

Cloud Source LLC

Assuming it’s a real entity, it would refer to a company specializing in providing cloud-based solutions and services. If not, then NO.

Distribution Inc.

A fictitious or placeholder name that typically refers to a company specializing in the supply or dissemination of goods or services.