Which of the Following Statements Is Correct

question 42

Multiple Choice

Which of the following statements is correct?

• A) If the inflation rate is steady at 5 percent, for example, the real and nominal interest rates will be equal.
• B) An increase in the demand for goods now compared with goods in the future would cause the real interest rate to rise.
• C) A "positive rate of time preference" means that an individual would rather save than consume.
• D) During an extended inflationary period, the money (or nominal) interest rate will usually be lower than the real rate of interest.

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Definitions:

Blue Price

This term does not have a widely recognized definition and could refer to specific market jargon or a particular pricing strategy.

Ambrosia

In Greek mythology, ambrosia is considered the food or drink of the gods, often depicted as conferring longevity or immortality upon whoever consumed it.

Fixed Coefficients

A term used in production and economics to describe technologies where inputs are used in strict fixed proportions to produce an output.

Production Possibility Set

A graph or curve depicting all maximum output possibilities for two or more goods, given a set of inputs.