If the Nominal Interest Rate Is 8 Percent and the Real

question 45

Multiple Choice

If the nominal interest rate is 8 percent and the real interest rate is 5.5 percent,then the inflation rate is

• A)-2.5 percent.
• B)0.45 percent.
• C)2.5 percent.
• D)13.5 percent.

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Definitions:

Coelom

A fluid-filled body cavity lined with mesoderm that provides space for the development and suspension of organs and systems in many animal phyla.

Radial Cleavage

The pattern of blastomere production in which the cells are located directly above or below one another; characteristic of early deuterostome embryos. Compare with spiral cleavage.

Abdominal Cavity

A body cavity in vertebrates that houses many organs, enclosed by the abdominal muscles and containing the stomach, intestines, liver, and other organs.

Coelom

A fluid-filled body cavity between the intestinal canal and the body wall in most bilateral animals, housing organs.