Suppose the Nominal Annual Interest Rate on a Two Year

question 45

Multiple Choice

Suppose the nominal annual interest rate on a two year loan is 16 percent and lenders expect inflation to be 10 percent in each of the two years.The annual real rate of interest is:

• A)12 percent.
• B)16 percent.
• C)4 percent.
• D)6 percent.

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Definitions:

Permanent Workforce

Employees who are considered permanent staff and have full-time employment contracts with benefits, as opposed to temporary or contractual staff.

Telecommuting

The practice of working from a remote location, outside of a traditional office environment, commonly from home, leveraging technology.

Distractions

Items or events that draw attention away from the task at hand, potentially reducing productivity or focus.

Productivity

The measurement of efficiency in which goods and services are created and delivered, often gauged by the output per unit of input.