Inflation Reached Its Peak (Of at Least 14 Percent)in the Late

question 167

Multiple Choice

Inflation reached its peak (of at least 14 percent) in the late 1970s to the early 1980s.If this statement is true,then

• A) it is certain the real rate of interest was greater than the nominal rate.
• B) it is certain the nominal rate of interest was greater than the real rate.
• C) borrowers would borrow more because,automatically,real rates would fall.
• D) the real rate of interest must have been constant,even if the nominal rate varied because of consumption smoothing.
• E) if higher nominal rates were charged,it would be certain that higher real rates would be received.

---

Definitions:

The Oyez Project

A multimedia judicial archive that aims to provide free access to detailed information about the Supreme Court of the United States, including audio recordings of oral arguments.

Lawsuits

Legal actions or proceedings brought by one party against another in a court of law to resolve disputes or claims.

Federal Court

A court established by the federal government with jurisdiction over disputes involving federal laws, interstate matters, and cases where the United States is a party.

Case Dockets

Official summaries or records of proceedings and filings in a court case.