You Borrow $10,000 from a Bank for One Year at a Nominal

question 184

Multiple Choice

You borrow $10,000 from a bank for one year at a nominal interest rate of 5%.The CPI over that year rises from 180 to 200.What is the real interest rate you are paying?

• A)15%
• B)5%
• C)-1.1%
• D)-6.1%
• E)-8.1%

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Definitions:

Interpersonal Deficits

Challenges or problems in an individual's ability to relate to, interact with, or understand others in social contexts.

Communication Skills

The capacity to convey or exchange information, ideas, and feelings effectively through verbal, non-verbal, written, and visual means.

Unresolved Grief

A prolonged, often debilitating emotional response to loss that remains intense and prevents the normal process of healing.

Catharsis

The process of releasing and thereby providing relief from strong or repressed emotions, often used in therapeutic contexts.