The Consumer Price Index Was 200 in 2008 and 190

question 51

Multiple Choice

The consumer price index was 200 in 2008 and 190 in 2009.The nominal interest rate during this period was 4.5 percent.What was the real interest rate during this period?

• A)- 0.75 percent
• B)- 0.5 percent
• C)9.5 percent
• D)9.75 percent

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Definitions:

Price Discrimination

The strategy of selling the same product at different prices to different segments of consumers.

Sherman Act

A landmark federal statute passed in the United States to outlaw monopolistic business practices.

Monopolies Illegal

A legal stance or policy where monopolies are prohibited due to their potential to limit competition, raise prices, and reduce choices for consumers.

Supreme Court

The highest judicial court in a country or state, responsible for interpreting the constitution and laws and applying their interpretations to major legal cases.