If the Nominal Interest Rate Is 8 Percent and the Rate

question 15

Multiple Choice

If the nominal interest rate is 8 percent and the rate of inflation is 3 percent,then the real interest rate is

• A)-5 percent.
• B)1.67 percent.
• C)5 percent.
• D)11 percent.

---

Definitions:

Generation X

Refers to the demographic cohort following the Baby Boomers and preceding Millennials, typically defined as individuals born from the early-to-mid 1960s to the early 1980s.

Generation Y

Also known as Millennials, this generation includes individuals born between the early 1980s and the late 1990s to early 2000s, known for their comfort with digital technology.

Generation Alpha

The cohort of individuals born from the early 2010s through the mid-2020s, following Generation Z.

Generation Alpha

The demographic cohort following Generation Z, born from the early 2010s and onward, growing up with technology and global challenges from a young age.