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:

Supply And Demand

A fundamental economic concept that describes the relationship between the quantity of a commodity available and the quantity of that commodity people are willing to buy at certain price levels.

Marketing

The business process of identifying, anticipating, and satisfying customers' needs and wants through creating, offering, and exchanging products of value.

Operations

The day-to-day activities involved in running a business, especially those related to production and delivery of goods and services.

Seasonal Demand

The fluctuation in consumer demand for particular products or services at different times of the year, influenced by seasons and holidays.