If the Nominal Interest Rate Is 5 $2.49 \%$

question 9

Multiple Choice

If the nominal interest rate is 5.05% per annum,what is the interest rate for a 180-day period?

• A) \( 2.49 \% \)
• B) \( 2.525 \% \)
• C) \( 0.9493 \% \)
• D) \( 9.09 \% \)

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Definitions:

Income

The monetary payment received for goods or services, or from other sources, as rents or investments.

Real Output

Measures the quantity of goods and services produced, adjusted for inflation, to reflect the actual physical output.

Diminishing Returns

Diminishing returns is an economic principle stating that as more investments or resources are added to a production process, the incremental gain in output will eventually decrease if all other factors remain constant.

Disguised Unemployment

Situations where more people are employed in a task or job than is necessary for its completion, leading to inefficiency.