Given a Real Interest Rate of 5

question 106

Multiple Choice

Given a real interest rate of 5.8% and an inflation rate of 3.4%,what is the nominal interest rate?

• A)9.8%
• B)2.3%
• C)3.4%
• D)5.8%
• E)9.4%

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Definitions:

Low Impedance

A characteristic of a circuit that allows a large amount of current to flow due to its low opposition to the current flow.

Opposition To Current

Resistance or any impedance facing the flow of electric current in a circuit, hindering the movement of charge.

Low-pass

A filter designed to allow signals with a frequency lower than a certain cutoff frequency to pass through while attenuating frequencies higher than the cutoff frequency.

Notch Filter

A filter designed to remove or significantly reduce the strength of a specific frequency or range of frequencies from a signal.