The Nominal Interest Rate Is 5 Percent and the Inflation

question 183

Multiple Choice

The nominal interest rate is 5 percent and the inflation rate is 2 percent.What is the real interest rate?

• A)7 percent
• B)2.5 percent
• C)10 percent
• D)3 percent

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Definitions:

Dendrites

The branched projections of a neuron that receive electrochemical signals from other neural cells and transmit these signals toward the cell body.

Newborn Sleeps

Refers to the sleep patterns and behaviors of newborns, often characterized by short cycles of sleep and wakefulness throughout a 24-hour period.

Hours

Units of time equivalent to 60 minutes, used to measure the duration of events or the length of the day.

Day

A period of 24 hours as a unit of time, representing one complete rotation of the Earth on its axis, commonly divided into daytime and nighttime.