If the Nominal Interest Rate Is 15 Percent and the Inflation

question 48

Multiple Choice

If the nominal interest rate is 15 percent and the inflation rate is 5 percent,then what is the real interest rate?

• A)10 percent
• B)20 percent
• C)3 percent
• D)5 percent

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Definitions:

Traditional Data

Information that has been collected in long-established or conventional ways, often not involving modern technology.

Accurate Information

Information that is correct, precise, and free of errors.

Interrater Reliability

An indicator of reliability that examines the agreement of observations made by two or more raters (judges).

Alternate Forms Reliability

Assessment of reliability by administering two different forms of the same measure to the same individuals at two points in time.