If Expected Inflation Is Constant and the Nominal Interest Rate

question 48

Multiple Choice

If expected inflation is constant and the nominal interest rate increased 2 percentage points, what would happen to the real interest rate?

• A) It would increase 2 percentage points.
• B) It would increase, but by fewer than 2 percentage points.
• C) It would decrease, but by fewer than 2 percentage points.
• D) It would decrease by 2 percentage points.

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Hematocrit

A measure of the percentage of red blood cells in a volume of blood.

Seizures

Sudden, uncontrolled electrical disturbances in the brain that can cause changes in behavior, movements, feelings, and levels of consciousness.

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The process of measuring the body's temperature to detect fever or other medical conditions.

Pyrexic

Another term for having a fever, characterized by an elevated body temperature above the normal range.