Which One of the Following Statements Is Correct

question 16

Multiple Choice

Which one of the following statements is correct?

• A)All real interest rates will be positive as long as the inflation rate is positive.
• B)Real rates must exceed inflation rates.
• C)Short-term interest rates are affected by future inflation expectations.
• D)Treasury bill returns tend to vary in direct relation to inflation rates.
• E)The Fisher hypothesis advocates that real interest rates follow inflation rates.

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Definitions:

Manipulative Strategies

Tactics used to influence or control others' behaviors or perceptions for personal gain.

External-Unstable Attribution

An attribution where an individual believes an event is caused by changeable, external factors.

Stable-Controllable Attribution

An explanation pattern where success or failure is attributed to factors that are both lasting (stable) and can be influenced by the individual (controllable).

Luck

The phenomenon and belief that defines the experience of notably positive, negative, or improbable events.