The Consumer Price Index Was 120 in 2013 and 126

question 115

Multiple Choice

The consumer price index was 120 in 2013 and 126 in 2014.The nominal interest rate during this period was 8 percent.What was the real interest rate during this period?

• A)3 percent
• B)2 percent
• C)3.3 percent
• D)12.8 percent

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Definitions:

Correlation

A numerical metric showing how much two or more variables change in relation to each other.

Statistically Significant

A term used to denote that the likelihood of an observed effect or relationship occurring by chance is very low.

Squaring the Value

The mathematical operation of multiplying a number by itself to get its square.

Experimental Conditions

Experimental conditions refer to the controlled variables, settings, or environments established by researchers in an experiment to investigate the effects on the subject's behavior or condition.