If the Nominal Interest Rate Is 8 Percent and the Rate

question 15

Multiple Choice

If the nominal interest rate is 8 percent and the rate of inflation is 3 percent,then the real interest rate is

• A)-5 percent.
• B)1.67 percent.
• C)5 percent.
• D)11 percent.

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Definitions:

Enzyme

Protein that acts as a catalyst.

Bacteria

Single-celled, microscopic organisms that can be found in almost every environment on earth, some of which are beneficial and others harmful to humans.

Macrophages

Large phagocytic cells found in tissues or as mobile white blood cells at sites of infection, playing essential roles in the immune response and tissue homeostasis.

Phagocytic Activity

Refers to the process by which certain cells engulf and digest foreign particles, bacteria, and other microorganisms.