Given a Real Interest Rate of 2

question 23

Multiple Choice

Given a real interest rate of 2.5% and an inflation rate of 4.5%,what is the nominal interest rate?

• A)2.5%
• B)-2.0%
• C)2.0%
• D)7.1%
• E)4.5%

---

Definitions:

Food Scarcity

A condition in which there is not enough food to satisfy the dietary requirements of the population, resulting in widespread hunger and malnourishment.

Mesolithic Transition

The period between the Paleolithic and Neolithic times, characterized by the development of new stone tool technologies and adaptations to changing environments and ways of life.

Southeast Asia

A geographical region located to the east of the Indian subcontinent and south of China, known for its diverse cultures, languages, and histories.

Natufians

A prehistoric culture located in the Near East, known for early developments in agriculture and sedentary life around 12,000 to 9,500 BC.