If the Annual Real Rate of Interest Is 4% and the Expected

question 42

Multiple Choice

If the annual real rate of interest is 4% and the expected inflation rate is 3%, the nominal rate of interest would be approximately

• A)4%.
• B)3%.
• C)1%.
• D)5%.
• E)None of the options

---

Definitions:

Kübler-Ross's Stages

A theory introduced by Elisabeth Kübler-Ross in her 1969 book "On Death and Dying," outlining five stages of grief: denial, anger, bargaining, depression, and acceptance.

Dying

The end stage of life in which bodily processes decline, leading to death.

Anger

An emotional response characterized by annoyance, displeasure, or hostility.

John Bowlby

A British psychologist and psychiatrist who is considered the father of attachment theory, which emphasizes the importance of early emotional bonds.