Which of the Following Statements Is Correct

question 220

Multiple Choice

Which of the following statements is correct?

• A)For a given real interest rate, the nominal interest must decrease if expected inflation increases.
• B)For a given nominal interest rate, the real interest will decrease if inflation decreases.
• C)For a given expected inflation rate, the nominal interest must increase if real interest decreases.
• D)For a given real interest rate, the nominal interest must increase if expected inflation increases.

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Definitions:

Sodium

A chemical element with the symbol Na and atomic number 11, a highly reactive metal.

Sodium

Sodium is a chemical element with the symbol Na and atomic number 11, known for its essential role in human physiology and its presence in salt.

President

The elected head of a republican state or a person holding a position of leadership in certain organizations.

Economy

A system of production, distribution, and consumption of goods and services within a particular geographical region.