Which One of the Following Is Correct Concerning Real Interest

question 40

Multiple Choice

Which one of the following is correct concerning real interest rates?

• A)real interest rates are constant.
• B)real interest rates must be positive.
• C)real interest rates must be less than nominal interest rates.
• D)real interest rates, if positive, increase purchasing power over time.

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Definitions:

Experimentation

The act of conducting a controlled test or investigation to explore a hypothesis or examine the effects of variables.

Correlated

When two or more variables are related in some way, with changes in one variable associated with changes in another.

Obesity

A medical condition in which excess body fat has accumulated to an extent that it may have a negative effect on health, leading to increased risk of various diseases.

Association

The connection or linkage between two concepts, items, or processes, often studied in psychology regarding memory and learning.