The Nominal Interest Rate Is 4

question 307

Multiple Choice

The nominal interest rate is 4.5 percent and the inflation rate is 0.9 percent. What is the real interest rate?

• A)5.4 percent
• B)5 percent
• C)4.1 percent
• D)3.6 percent

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Definitions:

Ventral

Ventral refers to the front or abdominal side of the body in anatomical terms, opposite of dorsal, which refers to the back side.

Nerve Cells

Specialized cells that transmit electrical signals throughout the body, essential for brain function and the nervous system.

Electrical Signals

Impulses of electric current that are used for communication within and between nerve cells and muscles in the body.

Responsiveness

The ability of an organism or system to adjust and react to changes or stimuli in its environment.