Alex Expects the Inflation Rate to Be 4

question 132

Multiple Choice

Alex expects the inflation rate to be 4%. If Alex borrows money at a nominal interest rate of 5%, his real interest rate is:

• A)greater than the nominal interest rate.
• B)less than the nominal interest rate.
• C)equal to the nominal interest rate.
• D)negative.

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Definitions:

Schizotypal Personality Disorder

A mental disorder characterized by severe social anxiety, thought disorder, paranoid ideation, derealization, transient psychosis, and often unconventional beliefs.

Illness Anxiety Disorder

A chronic condition characterized by excessive worry about having a serious illness, despite few or no symptoms and negative medical evaluations.

Post-traumatic Stress Disorder

A syndrome linked to mental health, initiated by the direct experience or observation of a traumatic event, with symptoms including replaying the event, bad dreams, and significant anxiety.

Dissociative Identity Disorder

A mental disorder characterized by the presence of two or more distinct personality states or identities within a single individual, often a result of severe trauma.