If the Nominal Interest Rate Is 7 Percent and the Real

question 68

Multiple Choice

If the nominal interest rate is 7 percent and the real interest rate is -2.5 percent,then the inflation rate is

• A)-9.5 percent.
• B)-4.5 percent.
• C)4.5 percent.
• D)9.5 percent.

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Definitions:

Aversive Stimulus

Aversive Stimulus is an unpleasant or painful stimulus used to induce changes in behavior through aversion therapy.

Operant Response

A behavior that is modified by its consequences, through reinforcements or punishments, in operant conditioning.

Aversive Stimuli

An unpleasant or harmful object, event, or situation that is avoided or intended to be avoided by an organism or individual.

Electric Shock

A sudden discharge of electricity through a part of the body, which can be used therapeutically or may occur accidentally.