If the Nominal Rate of Interest Is 6

question 288

Multiple Choice

If the nominal rate of interest is 6.5% and the inflation rate is 3.0%,what is the real rate of interest?

• A)-9.5%
• B)-3.5%
• C)1.5%
• D)3.5%
• E)9.5%

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Definitions:

Board of Directors

A group of elected or appointed members who jointly oversee the activities of a company or organization.

Decision

The act of making a choice among alternative options based on an evaluation of the potential outcomes.

Compound Sentence

Sentence with two main clauses joined by a comma and conjunction.

Promotion

Activities designed to increase awareness, sales, or acceptance of a product, service, or idea.