From the Early 1980's Through the 1990's,the Nominal Interest Rate

question 197

Multiple Choice

From the early 1980's through the 1990's,the nominal interest rate

• A)fell because the Fed got inflation under control.
• B)fell because the Fed let inflation get out of control.
• C)rose because the Fed got inflation under control.
• D)rose because the Fed let inflation get out of control.

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Definitions:

Tastes and Preferences

Factors that influence consumer decision-making, determining the goods or services consumers demand.

Prices of Related Goods

Refers to how the cost of one good or service can affect the demand for another, reflecting the substitution or complementary relationship between them.

Changes in Supply

These refer to shifts in the quantity of a good or service that producers are willing and able to sell at various prices, caused by factors other than the price of the good or service.

Inferior Goods

Goods for which demands decrease when people’s incomes rise.