If the Current Inflation Rate Is 5%, Then the Nominal

question 90

Multiple Choice

If the current inflation rate is 5%, then the nominal rate necessary for you to earn an 8% real interest rate on your investment is closest to:

• A)13.4%
• B)4.9%
• C)3.0%
• D)13.0%

---

Definitions:

Marine Organisms

Living creatures that inhabit the ocean or sea, including both plants and animals.

Nekton

Aquatic animals that can swim and move independently of water currents, including fish, whales, and squids.

Limnetic Zone

The open water area of a freshwater basin (like a lake) where sufficient light penetrates to support photosynthesis, excluding the near shore areas.

Benthic Zone

The environmental zone located at the deepest part of a water body like an ocean or lake, encompassing both the surface of the sediment and several layers beneath it.