The Nominal Interest Rate Is

question 82

Multiple Choice

The nominal interest rate is

• A)determined by the forces of supply and demand in the consumer goods market.
• B)the interest rate in current dollars, unadjusted for inflation.
• C)higher than the real interest rate even if the expected inflation rate is zero.
• D)lower than the real interest rate even if the expected inflation rate is zero.
• E)b and d

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Definitions:

Diffusion of Responsibility

A phenomenon where individuals are less likely to take action or feel a sense of responsibility when others are present.

Bystander Effect

The situation wherein people are less inclined to assist someone in need when there are others around.

Social Exchange Theory

A hypothesis positing that actions within a society stem from a transactional process designed to optimize advantages while reducing disadvantages.

Bystander Effect

A social psychological phenomenon where individuals are less likely to offer help to a person in need when other people are present.