When the Expected Inflation Rate Is Zero, Then It Follows

question 165

Multiple Choice

When the expected inflation rate is zero, then it follows that the

• A)real interest rate is greater than the nominal interest rate.
• B)demand for loanable funds is equal to the supply of loanable funds.
• C)demand for loanable funds is greater than the supply of loanable funds.
• D)real interest rate is less than the nominal interest rate.
• E)none of the above

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Definitions:

Short-term Memory

A type of memory that holds a small amount of information for a short period, typically seconds to minutes.

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The ability to endure periods without sleep without significant impairment to functions or health.

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