If You Want to Earn a Real Interest Rate of 3

question 234

Multiple Choice

If you want to earn a real interest rate of 3% on money you lend and you expect that inflation will be 2%,what nominal rate of interest will you charge?

• A)1%
• B)5%
• C)6%
• D)9%

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Definitions:

Surface Structure

In linguistics, the term refers to the literal arrangement of words in a sentence, as contrasted with the deeper meaning (deep structure) conveyed by the sentence.

Assign Meaning

The mental process of attributing value or significance to stimuli, experiences, or symbols.

Morphemes

The tiniest units of grammar within a language that bear semantic value.

Semantics

The branch of linguistics concerned with the meaning of words and the ways in which language conveys meaning.