Assume That the Inflation Rate Is Positive

question 24

Multiple Choice

Assume that the inflation rate is positive. Given this information, which of the following is always true?

• A) The nominal interest rate must be greater than the real interest rate.
• B) The real interest rate is negative.
• C) The real interest rate is greater than the nominal interest rate.
• D) The nominal interest rate must be equal to the real interest rate.
• E) The real interest rate is positive.

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Definitions:

Power Distribution Module

A component in a vehicle or system that manages the distribution and regulation of electrical power to various parts.

Batteries

Electrochemical cells that store energy and release it in the form of electricity, used as a power source in many electronic devices and vehicles.

SAE Relay

A relay standardized by the Society of Automotive Engineers, designed for automotive electrical applications.

Control Circuit

Used in reference to both cranking systems and air brake systems. In a cranking system, it is the low-current switching circuit that connects the ignition switch with the magnetic switch. In an air brake system, it defines low-volume pilot air signals that are used to activate high-volume slave circuits.