If the Nominal Interest Rate Is 4

question 39

Multiple Choice

If the nominal interest rate is 4.2 percent and the rate of inflation is -0.5 percent,then the real interest rate is

• A)-8.4 percent.
• B)-2.1 percent.
• C)3.7 percent.
• D)4.7 percent.

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Definitions:

Vasodilation

Widening of a blood vessel when smooth muscle that rings it relaxes.

Vertebrate

Animal with a backbone.

Hot Temperature

A condition or degree of heat that is considerably higher than what is considered comfortable or normal to living organisms and their environments.

Tubular Secretion

Ions and breakdown products of organic molecules move out of peritubular capillaries and into filtrate.