You Notice That When the Inflation Rate Increases, the Interest

question 363

Multiple Choice

You notice that when the inflation rate increases, the interest rate tends to increase. This observation indicates that

• A) the variables have an inverse relationship.
• B) higher inflation rates must cause a higher interest rate.
• C) a scatter diagram of the inflation rate and the interest rate will show a positive relationship.
• D) there might be false causality between inflation and the interest rate.

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Definitions:

Transcendental Meditation

A form of silent mantra meditation aimed at promoting relaxation and reducing stress.

Altered State

A condition in which the normal functioning of consciousness is changed, often experienced during meditation, trance, sleep, or under the influence of psychoactive substances.

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The awareness of internal and external stimuli, enabling perception, thought, and self-awareness.

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Episodes of screaming, intense fear, and flailing while still asleep, associated with non-REM sleep.