If the real interest rate is 6 percent and the price level is falling at a rate of 2 percent, what is the nominal interest rate? a. 8 percent b. 6 percent c. 10 percent d. 4 percent

d. 4 percent

Explanation:

In order to find the nominal interest rate we will use the formula

(1+Real interest rate)=(1+nominal interest rate)/(1+Inflation)

The real interest rate is 6%, the inflation is negative 2% because prices are falling at a rate of 2% and we have to find the nominal interest rate. We will put these values in the formula.

1.06=(1+Nominal interest rate)/(0.98)

1.06*0.98=1+ nominal interest rate

1.0388-1=Nominal interest rate.

Nominal interest rate = 0.0388 or 3.88%

We can round that off to 4%

drop shippers;

the correct answer option is b. a single paragraph.

explanation:

when you are thinking about paragraph​ topics, you should always choose a subject that can be adequately addressed in a single paragraph.

a paragraph is a piece of writing consisting of a few sentences that deal with a single theme. it has only a single idea that the paragraph revolves around and talks about.

so a paragraph topic must be chosen wisely where a single idea can be communicated in a single paragraph.