If the Market Interest Rate Is 8% and the Inflation

question 54

Multiple Choice

If the market interest rate is 8% and the inflation rate is 3%,then the real interest rate equals

• A) 3%.
• B) 5%.
• C) 8%.
• D) 11%.
• E) 24%.

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Definitions:

Nature-Nurture Controversy

The debate over the relative contributions of genetics (nature) and environment (nurture) to the development of individual characteristics and behaviors.

Heredity

The passing of traits from parents to offspring through genes.

Nutrition

The process of providing or obtaining the food necessary for health and growth.

Chronosystem

The environmental changes that occur over time and have an effect on the child.