Correct Responses,79 Discrimination Index,13Correct Answer,True10.17 If the nominal interest rate is 4#25 and if prices fall by4#25peryear,then the real rate ofinterest is approximately 8#25.CHAPTER 10 Intertemporal Choice 180Topic,Intertemporal Choice Di#0Eculty,1#25 Correct Responses,73 Discrimination Index,35Correct Answer,False10.18 A utility maximizing consumer would not choose the investment