Which of the Following Statements Is Correct? the Real Interest

question 103

Multiple Choice

Which of the following statements is correct? The real interest rate must be

• A)high if the nominal interest rate is high.
• B)high if the inflation rate is greater than the nominal interest rate.
• C)low if the nominal interest rate is high.
• D)positive if the nominal rate of interest is greater than the rate of inflation.
• E)negative if the nominal rate of interest is greater than the rate of inflation.

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Definitions:

Effectiveness

The degree to which objectives are achieved and the extent to which targeted problems are solved.

Non-verbal Communication

The process of conveying a message without the use of words, including gestures, facial expressions, and body language.

Interpersonal Space

The physical distance maintained between individuals to feel comfortable during social interactions.

Eye Contact

A form of nonverbal communication that occurs when two individuals look directly at each other's eyes.