If the Nominal Interest Rate Is 1

question 326

Multiple Choice

If the nominal interest rate is 1.5 percent and the rate of inflation is -0.5 percent, then the real interest rate is

• A)-4 percent.
• B)-2 percent.
• C)1 percent.
• D)2 percent.

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Definitions:

Comorbidity

The occurrence of two or more diseases or disorders in the same individual at the same time.

DSM-IV-TR Disorder

A mental or behavioral condition as classified in the Diagnostic and Statistical Manual of Mental Disorders, Fourth Edition, Text Revision.

Causality

The relationship between cause and effect, where one event is understood to be the direct result of another.

Diagnostic System

A framework or methodology used for identifying and classifying diseases or psychological conditions.