If the Expected Inflation Rate Is 3 Percent, the Nominal

question 58

Multiple Choice

If the expected inflation rate is 3 percent, the nominal interest rate is 5 percent, and the actual inflation rate turns out to be 4 percent, then the realized real interest rate is_____than the expected real interest rate and borrowers_____ relative to lenders.

• A)less; gain
• B)less; lose
• C)greater; gain
• D)greater; lose

---

Definitions:

Visual Stimulation

Exposure to visual cues that promote sensory processing and cognitive development, especially significant in early childhood development.

Peek-a-boo

A common game played with young children, involving hiding and revealing one's face to surprise the child.

Anterior Fontanel

The largest soft spot on a baby's skull, which allows for growth of the brain and skull during an infant's first year.

Binocularity

The ability of both eyes to work together to achieve a single, cohesive visual perception.