When There Is High Inflation

question 22

Multiple Choice

When there is high inflation

• A) interest rates fall due to government policy.
• B) the real interest rate is always greater than the nominal interest rate.
• C) the nominal interest rate is always greater than the real interest rate.
• D) the real interest rate is always negative.
• E) the nominal interest rate is approximately equal to the real interest rate.

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Definitions:

UCS

An abbreviation commonly used in psychology that stands for Unconditioned Stimulus, which automatically triggers a response without any prior learning.

Stimulus Generalization

The tendency to respond to a stimulus that is only similar to the original conditioned stimulus with the conditioned response.

Stimulus Adaptation

The decrease in responsiveness of sensory receptors to a constant stimulus over time, leading to a diminished perception of the stimulus.

Response Generalization

The process by which a response applied to one stimulus becomes associated or elicited by other, similar stimuli.