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:

Indirect Approach

A communication strategy where the main point or request is presented after providing background information or justification.

Company Policy

Guidelines and rules that outline how a company and its employees should operate within and represent the organization.

Apologetic Tone

A manner of communication that expresses regret, remorse, or sorrow, often used in situations where there has been a mistake or misunderstanding.

Negative Messages

Communications that deliver bad news, rejections, or potentially upsetting information in a tactful and considerate manner.