If the Nominal Interest Rate Is 8% and the Inflation

question 90

Multiple Choice

If the nominal interest rate is 8% and the inflation rate is 3%, then the real interest rate is:

• A)4%.
• B)8%.
• C)3%.
• D)5%.

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Definitions:

Personality Characteristic

Traits or qualities that contribute to an individual's distinctive patterns of thinking, feeling, and behaving.

Behavioural Tolerance

Through the principles of classical conditioning, cues in the environment can become conditioned stimuli to the effects of drug use. These cues cause the individual to anticipate the drug effects so that when the drug is actually administered the effects are diminished. Tolerance, or the need for a greater amount of drug for the same effect, is greatest when the conditioned environmental cues are present.

Severely Impaired

A condition in which an individual experiences significant barriers or limitations in physical or mental functioning.