When the Inflation Rate Is Zero,the ________

question 93

Multiple Choice

When the inflation rate is zero,the ________.

• A)real interest rate equals the nominal interest rate
• B)demand for loanable funds increases
• C)supply of loanable funds decreases
• D)nominal interest rate is zero
• E)Both B and C occur.

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Definitions:

Mental Processing

The operations performed by the brain to receive, perceive, store, and retrieve information.

Conscious

Conscious refers to the awareness of the self, one's thoughts, feelings, and environment at any given time.

Strong Feelings

Intense emotional responses, which can range from joy, love, and excitement to anger, fear, and sadness.

Relevant Information

Data or facts that are pertinent and useful to the understanding, decision-making, or problem-solving process regarding a specific situation or subject.