If the Inflation Rate Is Zero, the Nominal Interest Rate

question 14

Multiple Choice

If the inflation rate is zero, the nominal interest rate is

• A)greater than the real interest rate.
• B)positive and the real interest rate is negative.
• C)less than the real interest rate.
• D)equal to the real interest rate.
• E)equal to the inflation rate.

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Definitions:

Dram Shop Act

A state statute that imposes liability on the owners of bars and taverns, as well as those who serve alcoholic drinks to the public, for injuries resulting from accidents caused by intoxicated persons when the sellers or servers of alcoholic drinks contributed to the intoxication.

Social Hosts

Individuals who provide alcohol to guests in a social setting, potentially facing legal liabilities if guests cause harm while intoxicated.

Liability

A legal obligation or responsibility that may result in the payment of damages or compliance with certain acts, often associated with the outcome of lawsuits or breaches of contract.

Good Samaritan Statutes

Laws that offer legal protection to individuals who voluntarily provide assistance in an emergency to those in need.