If a Bank Posts a Nominal Interest Rate of 4

question 80

Multiple Choice

If a bank posts a nominal interest rate of 4 percent,and inflation is expected to be 3 percent,then

• A)the expected real interest rate is 7 percent.
• B)the expected real interest rate is 1 percent.
• C)the expected real interest rate is 1.33 percent.
• D)the expected real interest rate is 12 percent.

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Definitions:

Biotic Potential

Maximum population growth rate under ideal conditions.

Age of Reproduction

The period in the life cycle of an organism when it becomes capable of reproducing sexually.

Offspring

The biological children or young produced by an organism, either through sexual or asexual reproduction.

Symbiotic Relationships

Close interactions between species that live together, often mutually beneficial, but can also include parasitic and commensal relationships.