If the Nominal Interest Rate Was 12 Percent and the Inflation

question 173

Multiple Choice

If the nominal interest rate was 12 percent and the inflation rate was 10 percent in 1980, while the nominal interest rate was 7 percent and the inflation rate was 2 percent in 2001, then

• A)real rates were higher in 2001.
• B)real rates were higher in 1980.
• C)credit was more expensive in 1980.
• D)credit was cheaper in 2001 because the nominal rate was lower.

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Definitions:

Psychoanalytic Model

A framework in psychology that emphasizes unconscious psychological processes and contends that childhood experiences are crucial in shaping adult personality and behavior.

Assessing Suicide Potential

The process of evaluating the risk factors and warning signs that indicate a person's likelihood of attempting suicide.

Gun

A weapon incorporating a metal tube from which bullets, shells, or other missiles are propelled by explosive force.

Commit Suicide

Intentionally bringing about one's own death.