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:

Mayor

The elected head of a city, town, or other municipality, responsible for governing and managing municipal affairs and policies.

Henry George

A 19th-century American economist and writer known for his belief that individuals should own the value they produce but that land and natural resources should belong to all (the single tax theory).

Single Tax

Concept of taxing only landowners as a remedy for poverty, promulgated by HenryGeorge in Progress and Poverty (1879).

Inequality

The state of being unequal, especially in terms of rights, status, and opportunities among different groups of people in society.