If Nominal Interest Rates Increase

question 97

Multiple Choice

If nominal interest rates increase:

• A)the expected inflation rate must have gone up.
• B)the real interest rate must have gone up.
• C)either the expected inflation rate went up, the real interest rate went up, or both.
• D)either the expected inflation rate went down, the real interest rate went down, or both.

---

Definitions:

Moral Development

Refers to the process by which individuals acquire the standards of morality and ethics, understanding the difference between right and wrong.

Lawrence Kohlberg

An American psychologist best known for his theory of stages of moral development.

Cognitive Structures

Mental frameworks that individuals use to organize and interpret information, guiding how they perceive the world.

Assimilation

In psychology, a cognitive process where individuals integrate new information into existing frameworks or schemas.