If the Nominal Interest Rate Is 5 Percent and the Rate

question 54

Multiple Choice

If the nominal interest rate is 5 percent and the rate of inflation is -2.5 percent,then the real interest rate is

• A)-7.5 percent.
• B)-2.5 percent.
• C)2.5 percent.
• D)7.5 percent.

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Definitions:

Appointment

The act of selecting an individual for a particular role or task, often related to a job or official position.

Jointly and Severally

A legal term indicating that two or more parties are fully responsible both together and individually for a liability or obligation.

UPA

Abbreviation for "Uniform Partnership Act," a uniform law regulating the formation, operation, and dissolution of partnerships in the United States.

Term Partnership

A partnership that is set up to run for a set time period or in order to accomplish a task of some sort.