If the Nominal Interest Rate Is 5 Percent and the Rate

question 115

Multiple Choice

If the nominal interest rate is 5 percent and the rate of inflation is 10 percent,what is the real interest rate?

• A) -5 percent
• B) -2 percent
• C) 2 percent
• D) 5 percent

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Definitions:

Destination

The intended end point or goal of a journey or an effort.

Feedback

Information provided as a response to a process or activity, used as a basis for improvement, learning, or performance adjustment.

Richness

The quality or state of being abundant or in great quantities, often used in the context of material wealth, cultural wealth, or biodiversity.

Feedback

Information provided regarding aspects of one's performance or behavior, intended to affirm strengths or identify areas for improvement.