If the Nominal Interest Rate Is 7 Percent and Expected

question 130

Multiple Choice

If the nominal interest rate is 7 percent and expected inflation is 4.5 percent, then what is the expected real interest rate?

• A)11.5 percent
• B)7 percent
• C)4.5 percent
• D)2.5 percent

---

Definitions:

Nuclear Power Plants

Facilities that generate electricity through the controlled nuclear reactions of radioactive materials, such as uranium.

Phishing Attack

A fraudulent attempt to obtain sensitive information by disguising oneself as a trustworthy entity in electronic communication.

Sensitive Information

Data that must be protected from unauthorized access or disclosure, including personal data, financial information, and other types of information classified as confidential.

Email

A method of exchanging digital messages over the Internet, using specific protocols for communication between senders and recipients.