Author Question: Chloe has a 15,000 personal loan at a nominal interest rate of 8 percent. If the inflation rate is 3 ... (Read 141 times)

Diane · **on:** Jun 29, 2018

Chloe has a 15,000 personal loan at a nominal interest rate of 8 percent. If the inflation rate is 3 percent, what is the real interest rate paid on the loan?

A) 2.67 percent B) 3 percent C) 8 percent D) 11 percent E) 5 percent

Question 2

According to the new growth theory, ________ is the factor that motivates technological change.

A) diminishing returns
B) random chance
C) decisions about how much human capital to acquire
D) profit
E) the replication of activities