If the Nominal Interest Rate Is 7 Percent and the Rate

question 168

Multiple Choice

If the nominal interest rate is 7 percent and the rate of inflation is 3 percent,then the real interest rate is

• A)7 percent.
• B)4 percent.
• C)3 percent.
• D)10 percent.

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Definitions:

Legitimate Power

Legitimate power is the authority granted to individuals in managerial or leadership positions, based on their role within the organization, which allows them to influence others' behaviors and decisions.

Expertise

is the extensive knowledge or skill in a particular area or field acquired through experience or training.

Employee Effectiveness

The degree to which employees successfully achieve their individual or organizational goals through their actions and performance.

State of Dependence

A condition where a person or entity relies on another for support, resources, or decisions.