The Nominal Interest Rate Is 3 Percent and the Inflation

question 16

Multiple Choice

The nominal interest rate is 3 percent and the inflation rate is 2 percent. What is the real interest rate?

• A)6 percent
• B)5 percent
• C)1.5 percent
• D)1 percent

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Definitions:

Blackberry

A fruit produced by many species in the Rubus genus within the Rosaceae family, known for its dark, purple-black color and composed of a cluster of drupelets.

Pea

A small, spherical seed or the seed-pod of the plant Pisum sativum, commonly used as a vegetable in cooking.

Endosperm Mother Cell

A cell in plants that undergoes meiosis to produce the endosperm after fertilization, which provides nutrients to the developing seed.

Sperm Nucleus

The nucleus found in sperm cells containing half of the genetic material required for the fertilization process leading to the development of a new organism.