Assume That for a Given Year, the Nominal Interest Rate

question 69

Multiple Choice

Assume that for a given year, the nominal interest rate is 9 percent while inflation rises to 11 percent indicating a 4 percent higher rate than anticipated.Which group of people is made better off by the inflation?

• A)Those who lend at fixed interest rates
• B)Those who borrow at fixed interest rates
• C)Those who borrow at variable interest rates
• D)Those who receive fixed incomes
• E)Those who save at variable interest rates

---

Definitions:

Discriminative Stimulus

A stimulus that signals the availability of reinforcement or punishment, prompting an increase in the likelihood of a specific response.

Cue

A cue is a signal or stimulus that triggers a response or action from an individual or system.

Act Aggressively

describes behavior that is forceful, hostile, or attacking, often with the intention to dominate or intimidate.

Punished Children

Refers to children who have received a form of punishment, potentially as a means of discipline or correction.