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:

External Locus Of Control

The belief that one's life events are largely influenced by external forces or fate rather than one's own efforts or actions.

High Need For Power

A psychological trait characterized by an individual's desire for influence or control over others.

Command Theory

A principle in legal and philosophical theory that emphasizes the role of authoritative commands, issued by a sovereign, in defining law.

Theory X

A management concept that assumes employees are inherently lazy, need constant supervision, and are motivated primarily by financial rewards.