If the Nominal Interest Rate Per Year Is 10% and the Inflation

question 57

Multiple Choice

If the nominal interest rate per year is 10% and the inflation rate is 4%,what is the real rate of interest?

• A)10.0%
• B)4.1%
• C)5.8%
• D)14.0%

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Definitions:

Endorphins

Peptides produced by the central nervous system and the pituitary gland, known for their ability to act as natural painkillers.

Heroin

An opioid drug made from morphine, a natural substance taken from the seed pod of various opium poppy plants.

Neurons

Electrically excitable cells that communicate with other cells via specialized connections called synapses, functioning as the basic working unit of the brain.

Hippocampus

A region of the brain crucial for learning and memory, located within the temporal lobes.