In Which Case Below Is the Real Interest Rate the Highest

question 242

Multiple Choice

In which case below is the real interest rate the highest?

• A)the nominal interest rate = 1% and inflation = 3%
• B)the nominal interest rate = 6% and inflation = 4%
• C)the nominal interest rate = 2% and inflation = -1%
• D)the nominal interest rate = 2% and inflation = 1%

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Definitions:

DSM-IV-TR

The Diagnostic and Statistical Manual of Mental Disorders, Fourth Edition, Text Revision; a guide used by healthcare professionals to diagnose mental disorders.

American Psychiatric Association

A professional organization of psychiatrists aimed at advancing the understanding and treatment of mental disorders.

Diagnostic

Pertaining to the identification of the nature or cause of a health problem, often involving analysis of symptoms and tests.

Psychological Disorders

Mental disorders characterized by dysfunctions in cognition, emotions, or behavior, significantly impacting daily life.