Suppose That the Nominal Interest Rate Is Constant and the Average

question 95

Multiple Choice

Suppose that the nominal interest rate is constant and the average price level begins to rise. Which of the following is most likely to happen?

• A) The real interest rate will fall.
• B) The level of national output will fall.
• C) The real interest rate will increase.
• D) The unemployment rate will increase.

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Definitions:

Sabotage

Deliberate action aimed at weakening a polity, effort, or organization through subversion, obstruction, disruption, or destruction.

Suicide Rates

The statistical figure representing the number of suicide deaths in a specified population and time period, typically per 100,000 individuals per year.

Climates

The general weather conditions of a region over a long period, including temperature, humidity, rainfall, and winds.

Non-Human Animals

Living organisms that belong to the Animalia kingdom but are not members of the human species.