A Positive Real Interest Rate Indicates

question 119

Multiple Choice

A positive real interest rate indicates

• A) how fast the number of dollars in your savings account is rising over time.
• B) how fast the purchasing power of your savings account is rising over time.
• C) the number of dollars in your savings account today.
• D) the purchasing power of your savings account today.

---

Definitions:

Hypothetical Question

A question based on assumptions or hypothetical situations, used to explore outcomes or legal principles.

Closed-ended Question

A type of question formulated to receive a specific, often "yes" or "no", answer.

Active Listening

The act of listening attentively to the speaker’s message and responding by giving appropriate feedback to show that you understand what the speaker is saying. Restating the speaker’s message in your own words to confirm that you accurately interpreted what was said.

Passive Listening

The act of listening attentively to the speaker's message and responding to the speaker by providing verbal or nonverbal cues that encourage the speaker to continue. In effect, saying “I'm listening, please go on.”