What Is the Real Interest Rate Given a Nominal Rate

question 36

Multiple Choice

What is the real interest rate given a nominal rate of 8% and an inflation rate of 4.5%?

• A)3.3%
• B)4.5%
• C)4.9%
• D)8.0%

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Definitions:

Voluntary Emigration

The act of leaving one’s country of origin to settle in another by choice, often for economic, social, or political reasons.

Capitalist Economy

An economic system where trade, industries, and the means of production are largely or entirely owned and operated by private individuals or corporations for profit.

Extraversion

A personality trait characterized by outgoingness, high energy, and sociability.

Defense Mechanisms

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