If the Nominal Interest Rate Is 8 Percent and Expected

question 55

Multiple Choice

If the nominal interest rate is 8 percent and expected inflation is 2.5 percent,then what is the real interest rate?

• A)10.5 percent
• B)20 percent
• C)5.5 percent
• D)3.2 percent

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Definitions:

Social Responsibility

The obligation of organizations or individuals to act in ways that benefit society at large, beyond their own interests or profits.

Customer Responsibility

The obligation of customers to act in a manner that respects the terms of service, policies, and ethical considerations of transactions with businesses.

Socially Responsible Behaviour

Conduct by individuals or organizations aimed at benefiting society, often beyond legal or regulatory requirements.

Restrictive Government Regulation

Refers to laws and policies imposed by governmental bodies that restrict, limit, or control certain activities or behaviors of individuals or organizations.