Which of the Following Statements Is Logically Valid

question 97

Multiple Choice

Which of the following statements is logically valid?

• A)If the rate of inflation is high,the nominal rate of interest must be low.
• B)If the rate of inflation is less than the nominal interest rate,the real interest rate is positive.
• C)If the real interest rate is less than the nominal interest rate,inflation must be zero.
• D)If the real interest rate is less than the nominal interest rate,inflation must be negative.
• E)If the nominal interest rate is high,the real interest rate must be high.

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Definitions:

Chapter 11

A provision of the United States Bankruptcy Code that allows businesses to reorganize their debts and continue operating.

Chapter 13

A section of the U.S. bankruptcy code allowing individuals earning regular income to develop a plan to repay all or part of their debts.

Debtor

An individual or entity that owes money to another entity, known as the creditor.

Bad Faith

Intentional dishonest act by not fulfilling legal or contractual obligations, misleading another, entering into an agreement without the intention or means to complete it, or violating basic standards of honesty in dealings.