If the Rate of Inflation Is 6 Percent and the Real

question 98

Multiple Choice

If the rate of inflation is 6 percent and the real interest rate is 2 percent, the nominal interest rate should be

• A) 2 percent.
• B) 4 percent.
• C) 8 percent.
• D) -2 percent.

---

Definitions:

Lactic Acid

An organic compound produced in muscles during intense activity, often associated with muscle fatigue.

Glycolytic

Relating to or involving the breakdown of glucose by enzymes, producing energy and pyruvic acid.

ATP

Short for Adenosine Triphosphate, a molecule that carries energy within cells for metabolism.

Vascular System

The complex network of blood vessels that circulate blood throughout the body, including arteries, veins, and capillaries.