The Tendency for Nominal Interest Rates to Be High When

question 130

Multiple Choice

The tendency for nominal interest rates to be high when inflation is high and low when inflation is low is known as:

• A)the consumer price index.
• B)deflating.
• C)shoe leather costs.
• D)the Fisher effect.

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Definitions:

Colonialism

The practice of acquiring full or partial control over another country, occupying it with settlers, and exploiting it economically, often associated with imperialism.

Poverty

A condition where individuals lack sufficient income or resources to achieve a minimum standard of living.

Children

Young human beings below the age of puberty or below the legal age of majority.

Democracy

In a democracy, citizens exercise a high degree of control over the state. They do this mainly by choosing representatives in regular, competitive elections.