Trends and Fluctuations in Nominal Interest Rates

question 76

Multiple Choice

Trends and fluctuations in nominal interest rates

• A)are closely connected with real GDP and the rate of inflation.
• B)are not closely connected with any economic variable.
• C)are closely connected with real GDP and not with the rate of inflation.
• D)are closely connected only with trends and fluctuations in the rate of inflation.
• E)depend on the exchange rate.

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Definitions:

Net Exports

The value of a country's total exports minus the value of its total imports; it can be a positive number (trade surplus) or a negative number (trade deficit).

Wage Rates

The standardized amount of payment given to employees for their services, usually expressed per hour or per annum.

Labor Productivity

The quantity of goods and services that a worker produces in a given amount of time.

Dumping

The practice of exporting goods at a price lower than the home-market price, often with the intent of undermining competition in the importing country.