If the Nominal Interest Rate Is 4 Percent and the Real

question 23

Multiple Choice

If the nominal interest rate is 4 percent and the real interest rate is -2.5 percent,then the inflation rate is

• A)-6.5 percent.
• B)-1.5 percent.
• C)1.5 percent.
• D)6.5 percent.

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Definitions:

Evolutionary Systematics

An approach to classification that considers both evolutionary relationships and the extent of divergence that has occurred since a group branched from an ancestral group. Compare with cladistics and phenetics.

Phylogenetic Tree

A branching diagram that shows lines of descent among a group of related species.

Ancestral Characters

See shared ancestral characters.

Maximum Likelihood

A statistical method for estimating the parameters of a model, where the estimated parameters maximize the likelihood of observing the given sample data.