If the Nominal Interest Rate Is 8 Percent and Expected

question 55

Multiple Choice

If the nominal interest rate is 8 percent and expected inflation is 2.5 percent,then what is the real interest rate?

• A)10.5 percent
• B)20 percent
• C)5.5 percent
• D)3.2 percent

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Definitions:

Chromosomes

Chromosomes are thread-like structures located within the nucleus of animal and plant cells, made of protein and a single molecule of deoxyribonucleic acid (DNA), carrying genetic information.

Biological Mother

A woman who has given birth to a child, contributing genetically through ovum to the child's birth.

Biological Father

A term referring to the man from whom a child has inherited DNA, typically the child's genetic parent.

Y Chromosome

One of the two sex chromosomes in humans and most other mammals, typically present in males, who have one X and one Y chromosome.