The Real Rate of Interest Is 4% and the Anticipated

question 317

Multiple Choice

The real rate of interest is 4% and the anticipated rate of inflation is 1%. What is the nominal rate of interest?

• A) 1%
• B) 3%
• C) 4%
• D) 5%

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Definitions:

Multiple Births

A pregnancy that results in the birth of more than one child, such as twins or triplets.

First Trimester Abortion

The termination of a pregnancy during the first 12 weeks or the first three months.

Pregnancy

The condition of having a developing embryo or fetus in the body, following conception and leading to childbirth.

Financial Inability

The lack of sufficient monetary resources to afford or maintain a desired standard of living or to fulfill financial obligations.