If the Nominal Interest Rate Is 10% and the Rate

question 27

Multiple Choice

If the nominal interest rate is 10% and the rate of inflation is 7%, what is the real rate of interest?

• A)2.8%
• B)7.0%
• C)10.3%
• D)3.0%

---

Definitions:

Sporophyte Generation

The sporophyte generation is part of the life cycle of plants and algae that is diploid, producing spores that germinate into the gametophyte generation.

Gametophyte

The phase in plants and algae's life cycle that generates gametes via mitosis, associated with reproduction.

Bud

An undeveloped shoot that develops into flowers, stems, or leaves. Buds are enclosed in bud scales; see Axillary Bud and Terminal Bud.

Coevolution

The reciprocal adaptation of two or more species that occurs as a result of their close interactions over a long period.