If the Nominal Interest Rate Exceeds the Rate of Inflation

question 74

Multiple Choice

If the nominal interest rate exceeds the rate of inflation, the real interest rate will

• A)not be affected.
• B)rise.
• C)be greater than zero.
• D)be less than zero.
• E)fall.

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Definitions:

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A federal health insurance program in the United States for people aged 65 and over, as well as for some younger individuals with disabilities.

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Refers to the financial spending by a government, including the funding of public services, infrastructure, and social programs.

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Documents acknowledging that a transaction has taken place and that a payment has been made or received.