Heavy Use of Long-Term Debt May Be Beneficial in an Inflationary

question 48

Multiple Choice

Heavy use of long-term debt may be beneficial in an inflationary economy because

• A) the debt may be repaid in more "expensive" dollars.
• B) nominal interest rates exceed real interest rates.
• C) inflation is associated with the peak of a business cycle.
• D) the debt may be repaid in "cheaper" dollars.

---

Definitions:

Excoriation

Injury to the surface of the skin caused by abrasion.

Nasogastric Tube

A medical device inserted through the nose and down into the stomach, used for feeding or removing stomach contents.

Water-Soluble Lubricant

A lubricant that is easily dissolved in water, commonly used in medical procedures or personal care products.

Guaiac Test

A diagnostic test used to detect the presence of blood in stool, which can indicate gastrointestinal bleeding or disorders.