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

question 97

Multiple Choice

If the real rate of return is 2 percent, and the inflation rate is 0 percent, then the nominal interest rate must be:

• A) 2 percent.
• B) 0 percent.
• C) 4 percent.
• D) −2 percent.

---

Definitions:

Technological Efficiency

The optimal use of technology to maximize output or outcomes with minimal waste, effort, or expense.

Workforce

The group of individuals engaged in or available for work, either in a specific region or within a particular industry or organization.

External Monitoring

The process of assessing external conditions or performance metrics to inform decision-making or strategy.

Business Organizations

Entities formed for the purpose of conducting commercial, industrial, or professional activities, structured in various forms such as partnerships, corporations, or sole proprietorships.