The Market Interest Rate in Alpha Is 7%, and the Market

question 80

Multiple Choice

The market interest rate in Alpha is 7%, and the market interest rate in Beta is 10%; the inflation rate in Alpha is 3%, and inflation rate in Beta is 8%.Which of the following statements is true?

• A)The real interest rate is higher in Alpha, but the nominal interest rate is higher in Beta.
• B)The real interest rate is higher in Beta, but the nominal interest rate is higher in Alpha.
• C)Both the real and nominal interest rates are higher in Alpha.
• D)Both the real and nominal interest rates are higher in Beta.

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Definitions:

Eversion

The act of turning inside out or being turned inside out, often used in medical contexts to describe the movement of body parts.

Lateral Compartment

Refers to one of the compartments in the lower leg, containing muscles that are primarily responsible for eversion and plantarflexion of the foot.

Anterior

Refers to the front position or aspect of an organism or one of its parts.

Posterior

Pertaining to the back side of the body or an organ, opposite of anterior.