If Expected Inflation Is Constant and the Nominal Interest Rate

question 79

Multiple Choice

If expected inflation is constant and the nominal interest rate increased 3 percentage points, the real interest rate would

• A) increase 3 percentage points.
• B) increase, but by less than 3 percentage points.
• C) decrease, but by less than 3 percentage points.
• D) decrease by 3 percentage points.

---

Definitions:

Legal Costs

Expenses associated with legal proceedings, including attorney fees, court fees, and other costs related to the enforcement or defense of legal rights.

Employee Loyalty

The dedication and commitment of workers to their employer, often resulting in longer tenure and high levels of organization engagement.

Distributive Justice

The perceived fairness of the distribution of resources within a society, emphasizing equitable access and allocation.

Vocal

Pertaining to the voice or the use of the voice in speech, singing, or other forms of expression.