What Is the Real Interest Rate Given a Nominal Rate

question 28

Multiple Choice

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

• A)8.0%
• B)3.3%
• C)4.9%
• D)4.5%

---

Definitions:

IQR

Interquartile Range, a measure of statistical dispersion, which is the difference between the 75th and 25th percentiles of the data.

Range

The difference between the highest and lowest values in a dataset, indicating the spread of the data.

Median

The middle value in a data set, which divides the set into two equal halves when the values are arranged in ascending order.

IQR

The Interquartile Range, which measures the spread of the middle 50% of a data set.