Which of the Following Statements Is (Are) TRUE

question 62

Multiple Choice

Which of the following statements is (are) TRUE?

• A) If the real interest rate is 3% and the nominal rate is 5%, the inflation rate is 8%.
• B) If the nominal interest rate is 5% and inflation is 2.5%, the real interest rate is 2.5%.
• C) If the nominal interest rate is 5% and inflation is 4%, the real interest rate is 9%.
• D) If the real interest rate is 3% and inflation is 5%, the nominal interest rate is 2%.

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Definitions:

Local Elites

Individuals or groups within a specific area who possess a significant amount of social, economic, or political power.

Unfruitful Industries

Industries or sectors that fail to produce significant output, profits, or positive outcomes, often leading to economic decline or stagnation.

War On Poverty

Plan announced by President Lyndon B. Johnson in his 1964 State of the Union address; under the Economic Opportunity Bill signed later that year, Head Start, VISTA, and the Jobs Corps were created, and programs were created for students, farmers, and businesses in efforts to eliminate poverty.

Economic Security

The condition of having stable income or other resources to support a standard of living now and in the foreseeable future.