If the Real Rate of Return Is 2 Percent, and the Inflation

question 75

Multiple Choice

If the real rate of return is 2 percent, and the inflation rate is 2 percent, then the nominal interest rate must be:

• A) 4 percent.
• B) 2 percent.
• C) −2 percent.
• D) −4 percent.

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Definitions:

Body Image

The perception and attitude an individual has towards the appearance, shape, and size of their own body.

Mental Picture

The act of visualizing something in the mind’s eye, forming a visual image.

Waist Circumference

A measurement around the smallest area of the waist, used as an indicator of health risks associated with obesity.

Health Problems

Issues affecting the physical or mental health and well-being of an individual.