Suppose the nominal interest rate is 4 and the rate of inflation ...

[lunatika]

Suppose the nominal interest rate is 4 and the rate of inflation is 3. The real interest rate is therefore
 
  A) 7.
  B) 1.
  C) 0.
  D) -1.
  E) none of the above.

Question 2

Refer to the scenario above. Which of the following is likely to happen if Rita confesses while Mike does not confess?
 
  A) Both of them will be let free.
  B) Rita will be let free while Mike will be suspended.
  C) 10 points will be deducted from their respective scores.
  D) 10 points will be deducted from Mike's score while Rita will be suspended.

[mathjasmine]

Answer to Question 1

B

Answer to Question 2

B

[lunatika]

Gracias!

[samiel-sayed]

Excellent