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Answer:
If nominal interest rate equals 5 percent and expected inflation is 3 percent, then the new nominal and real interest rates are respectively 5% and 2%.
Explanation:
The nominal interest rate is called the interest rate that is set by the bank and that will be added to the initial capital gradually according to the percentage established in the initially determined time. Thus, in the case, an annual interest of 5% is given, with which a deposit of $ 100 will rise to $ 105 after one year.
Now, the nominal interest rate may not represent real money growth. This is so because, due to inflation, a depreciation of the invested value occurs. Thus, for example, a deposit with an interest rate of 5% per year in a currency with inflation of 10% per year is losing 5% of its value during that year. In the case, since inflation is 3%, the real interest rate (that is, the real growth of investment) is 2%.
The option that best tell more about the total fertility rate is 3.8 five years later is option D.
<h3>Why does the fertility rate fall over time?</h3>
The fall in fertility rate is due to a lot of factors. One of the factor is mostly due to employment shifts, reproductive health issues and other.
Mathematically, The option that best tell more about the total fertility rate is 3.8 five years later is option D.
Learn more about fertility rate from
brainly.com/question/13778320
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Maggie's reasons for not experimenting with drugs reflect that she might get caught and end up in jail.
