If the Nominal Interest Rate Is 6% and the Inflation

question 34

Multiple Choice

If the nominal interest rate is 6% and the inflation rate is 2%,then the real interest rate is

• A)8%.
• B)4%.
• C)3%.
• D)2%.
• E)1%.

---

Definitions:

Peak Periods

Peak periods are times of high demand or activity within a business or system, often requiring additional resources to meet customer needs or service levels.

Shifting Demand

Refers to the movement or change in consumer demand for a product or service over time, often influenced by factors such as seasonal changes, price fluctuations, and changes in consumer preferences.

Revenue Management

The application of disciplined analytics that predict consumer behavior at the micro-market level to optimize product availability and price to maximize revenue growth.

Limited Supply

A situation where the availability of a product or resource is less than the demand for it, often leading to increased prices.