Given a Nominal Interest Rate of 6 $1.67 \%$

question 30

Multiple Choice

Given a nominal interest rate of 6.75% and a real rate of return of 4%,what is the expected rate of inflation?

• A) \( 1.67 \% \)
• B) \( 2.14 \% \)
• C) \( 2.26 \% \)
• D) \( 2.64 \% \)

---

Definitions:

Nature-Nurture Debate

A discussion regarding the relative contributions of genetic inheritance and environmental factors to human development.

Heredity

The genetic transmission of traits, characteristics, and diseases from parents to their offspring, a fundamental principle of genetics.

Environmental Influences

The sum of external factors, from childhood through adulthood, impacting an individual's physical well-being, lifestyle choices, and psychological states.

Urie Bronfenbrenner

An American psychologist known for his ecological systems theory, which emphasizes the importance of multiple environmental layers in human development.