If the Nominal Interest Rate Is 8 Percent and Inflation

question 34

Multiple Choice

If the nominal interest rate is 8 percent and inflation is 3 percent, approximately what is the real interest rate?

• A) 11 percent
• B) 8 percent
• C) 5 percent
• D) 3 percent

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Definitions:

Standard Deviation

An indicator that assesses the degree to which data values are spread out or clustered around the mean.

Basketball Team

A group of players who come together to compete in the sport of basketball.

Scoring Output

The generated results or scores from an assessment, evaluation, or algorithm, typically used in testing or machine learning contexts.

Standard Deviation

It quantifies the degree to which individual data points in a dataset deviate from the dataset's mean.