If the Real Interest Rate Is 3% and the Inflation

question 142

Multiple Choice

If the real interest rate is 3% and the inflation rate is 7%,then the nominal interest rate equals

• A) 3%.
• B) 4%.
• C) 7%.
• D) 10%.
• E) 21%.

---

Definitions:

Self-Actualization

The accomplishment or realization of personal talents and possibilities, regarded as an essential urge or demand in every person.

Abraham Maslow

A psychologist known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs.

Unconditional Positive Regard

A concept in client-centered therapy proposing absolute acceptance and support of a person regardless of what they say or do.

Factor Analysis

A statistical method used to identify underlying variables, or factors, that explain the pattern of correlations among observed variables.