If You Want to Earn a Real Interest Rate of 3.5

question 11

Multiple Choice

If you want to earn a real interest rate of 3.5% on money you lend and you expect that inflation will be 2.5%, what nominal rate of interest will you charge?

• A)1%
• B)5%
• C)6%
• D)9%

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Definitions:

Muslim Surname

A family name associated with followers of Islam, often indicating lineage, geographical, or historical background within the Muslim community.

Swedish Surname

A family name originating from Sweden, often indicating ancestral or geographical origins.

Discriminatory Behavior

Actions or attitudes that unfairly differentiate or exclude individuals based on personal characteristics, such as race, gender, or age.

Ingroup

A social group to which a person psychologically identifies as being a member, often used to describe groups formed based on shared interests or identities.