What Is the Real Interest Rate Given a Nominal Rate

question 107

Multiple Choice

What is the real interest rate given a nominal rate of 8.9% and an inflation rate of 1.9%?

• A) 6.9%
• B) 8.2%
• C) 9.6%
• D) 11.0%

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Definitions:

Real Estate Agent

A licensed professional who represents buyers or sellers in real estate transactions, facilitating the sale or lease of properties.

Express Agreement

A clear and unambiguous mutual understanding or contract between parties, typically in written or spoken form, regarding the terms of their arrangement.

Legal Rules

These are principles or directives enacted by a governing body that regulate behavior and are enforceable by the imposition of penalties for violations.

Commission

A fee paid to an agent or employee for transacting a sale, calculated as a percentage of the sale price.