If the Inflation Rate Is 5% and the Real Interest

question 92

Multiple Choice

If the inflation rate is 5% and the real interest rate is 4%, then the nominal interest rate is around

• A)-1%.
• B)1%.
• C)9%.
• D)20%.

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Definitions:

Activation Energy Barrier

The minimum amount of energy required for reactants to transform into products in a chemical reaction.

Catalyst

A material that accelerates a chemical reaction's speed without any lasting alteration to its own chemical structure.

Homogeneous Catalyst

A catalyst that exists in the same phase (solid, liquid, or gas) as the reactants, facilitating the reaction uniformly throughout the mixture.

Heterogeneous Catalyst

A catalyst that exists in a different phase (solid, liquid, or gas) than the reactants in a chemical reaction, facilitating the reaction without undergoing permanent change.