If nominal interest rate equals 5 percent and expected inflation is 3 percent, then the new nominal and real interest rates are respectively: A) 3% and 5%. B) 8% and 5%. C) 5% and 2%. D) 5% and 7%. E) 7% and 5%.

C. Real Interest Rate = 2% and Nominal Rate = 5%

Explanation:

Given

Nominal Interest Rate = 5%

Expected Inflation Rate = 3%

Required

The new nominal rate

The real interest rate

First; We'll need to calculate the real interest rate

New Nominal Rate is calculated as thus;

Convert to Percentage

(Approximated)

claude wants to buy a car and there are a few factors that will affect the decision he makes in choosing what car he should buy. the first factor that can affect his decision regarding what car to buy can be the social and the cultural influence of the society he is living in. for example, there might be a certain car that might have a better value in the eyes of the society or in other words a better social norm regarding that car.

another factor can be personal habits. claude might need a spacious car because he might have kids or might utilize the back seat for other purposes hence a sports car (2 seated) won’t be appropriate.  

answer; vehicle vin#mileage, a detailed description of work requested, vehicle owner contact phone number;