If the Nominal Interest Rate Is 6 Percent and the Rate

question 81

Multiple Choice

If the nominal interest rate is 6 percent and the rate of inflation is 10 percent,then the real interest rate is

• A)-16 percent.
• B)-4 percent.
• C)4 percent.
• D)16 percent.

---

Definitions:

Apply

To make a formal request or submission for something, such as a job, program, or permission.

Scope of Employment

The range of activities and duties that an employee is reasonably expected to perform as part of their job.

Employer

An individual or organization that hires and compensates personnel for their services or work.

Use Force

The act of using physical power or violence to accomplish a goal or enforce a decision.