Given a Nominal Interest Rate of 3% and an Inflation

question 74

Multiple Choice

Given a nominal interest rate of 3% and an inflation rate of 4.5%,what is the real interest rate?

• A)3%
• B)0%
• C)-1.4%
• D)1.5%
• E)7.5%

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Definitions:

Autotroph

Organism that can capture energy and synthesize organic molecules from inorganic nutrients.

Biotic Factors

Components of an ecosystem that are living, including plants, animals, and microorganisms.

Abiotic Factors

Non-living chemical and physical parts of the environment that affect living organisms and the functioning of ecosystems.

Ecosystem

A biological community of interacting organisms and their physical environment.