The Natural Rate of Interest Is the Real Interest Rate

question 27

Multiple Choice

The natural rate of interest is the real interest rate:

• A)at which the demand for goods and services equals the natural level of output.
• B)that most people anticipate based on their expectations of inflation.
• C)at which the natural rate of unemployment equals the natural rate of output.
• D)equal to the nominal interest rate minus the natural rate of inflation.

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Definitions:

Synaptic Cleft

The synaptic cleft is the small gap at the junction between neurons, through which neurotransmitters carry signals from one neuron to another.

Axon Terminal

The end part of an axon that makes synaptic connections with another nerve cell or with an effector cell.

Dendrites

Branch-like extensions of neurons that receive signals from other neurons and conduct them toward the cell body.

Synapse

The point of contact between two neurons through which electrical or chemical signals are relayed from one neuron to the other.