Which of the Following Is True

question 16

Multiple Choice

Which of the following is true?

• A) The real interest rate matters more to borrowers than the nominal interest rate.
• B) The nominal interest rate is equal to the real interest rate minus the expected inflation rate.
• C) If there is expected deflation (expected decline in the price level), instead of expected inflation, the nominal interest rate will be greater than the real interest rate.
• D) The nominal interest rate is determined by the demand for credit and the supply of credit, or by the demand for loanable funds and the supply of loanable funds.
• E) If there is expected deflation, the nominal interest rate will necessarily be negative.

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Definitions:

Industry Partners

Businesses or organizations that collaborate with educational or research institutions, often providing support, resources, or practical experience opportunities.

Core Business Partners

Key organizations or individuals that a company collaborates with closely to conduct its primary business activities.

Personal Communication

Personal communication refers to direct interaction between individuals, whether in person, via phone, email, or other means.

External-operational Communication

Refers to communication exchanges between a company and external entities, focusing on operational activities and partnerships.