Pursuant to the Fisher Effect, the Nominal Rate of Interest

question 68

Multiple Choice

Pursuant to the Fisher effect, the nominal rate of interest is 5.00%, the inflation rate is 2.00% and the real rate of interest is [blank].

• A)5%, same as the nominal rate
• B)2.94%
• C)3.00%
• D)7.00%

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Definitions:

Short-term Memories

Refers to the part of the memory system that holds information for a brief period, typically seconds to minutes.

Prefrontal Lobes

The front part of the frontal lobes of the brain, implicated in a variety of complex behaviors, including planning, and greatly contributes to personality development.

Occipital Lobe

The region of the brain located at the back of the head, responsible for processing visual information from the eyes.

Short-term Memory

Part of the memory system with a relatively limited capacity that can hold information in an easily accessible state for a short period.