In Year 1 the Price Level Is Constant and the Nominal

question 35

Multiple Choice

In year 1 the price level is constant and the nominal rate of interest is 6 percent. But in year 2 the inflation rate is 3 percent. If the real rate of interest is to remain at the same level in year 2 as it was in year 1, then in year 2 the nominal interest rate must

• A) rise by 9 percentage points.
• B) rise by 3 percentage points.
• C) fall by 3 percentage points.
• D) rise by 6 percentage points.

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Definitions:

Interventions

Actions taken to improve a situation, especially in social, economic, educational, or health-related contexts.

Primary Mental Health Project

A preventive intervention program designed to identify children at risk of developing psychological problems and provide them with support and counseling.

Mental Health Problems

Disorders or conditions that affect an individual's mood, thinking, and behavior, potentially interfering with daily functioning.

Early Risk Factor

A characteristic or exposure that increases the likelihood of developing a disease or injury earlier in life.