The Nominal Interest Rate Is 3

question 167

Multiple Choice

The nominal interest rate is 3.5 percent and the inflation rate is 1.5 percent.What is the real interest rate?

• A)5.25 percent
• B)5 percent
• C)2.3 percent
• D)2 percent

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Definitions:

Overt Behavior

Overt behavior refers to observable actions and responses of an individual that can be seen and measured directly by others.

Retained

Kept in possession or memory; not lost or forgotten.

Self-reinforcement

The process by which individuals reward themselves for reaching certain goals or exhibiting desirable behaviors, thus encouraging repeated action.

Personal Standards

Refers to the individual benchmarks or expectations one sets for themselves in various aspects of their lives, influencing behavior and self-assessment.