If the Price Level Increases by 80% in One Year

question 59

Multiple Choice

If the price level increases by 80% in one year, then for the real rate of interest to be 10%, the nominal rate of interest would have to be

• A)98%.
• B)70%.
• C)18%.
• D)88%.
• E)72%.

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Definitions:

Communards

Participants in the Paris Commune, a radical socialist and revolutionary government that briefly ruled Paris in 1871.

Lower-Middle Class

A social class positioned below the upper-middle class, typically comprised of semi-professionals, skilled craftsmen, and lower-level management.

Red Shirts

Volunteers who followed the Italian patriot and general Giuseppe Garibaldi during his campaigns for the unification of Italy in the 19th century.

Giuseppe Garibaldi

An Italian general, patriot, and nationalist who played a key role in the unification of Italy, known for his leadership in the campaign and battles that consolidated different states of the Italian Peninsula into a single nation.