If You Expect the Inflation Rate to Be 5 Percent

question 93

Multiple Choice

If you expect the inflation rate to be 5 percent next year and a one-year bond has a yield to maturity of 7 percent,then the real interest rate on this bond is

• A) -12 percent.
• B) -2 percent.
• C) 2 percent.
• D) 12 percent.

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A group of muscles surrounding the orbit of the eye that control movements such as blinking, squinting, and enabling vision.

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Observable movements of the facial muscles that convey emotional states or reactions to stimuli.

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The implied or expressed significance of a smile, which can vary from happiness, friendliness, sarcasm, to contempt, depending on cultural and situational contexts.

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Fundamental emotions that are theorized to be universally experienced by humans across cultures, such as happiness, sadness, fear, disgust, surprise, and anger.