If Expected Inflation Is Constant and the Nominal Interest Rate

question 79

Multiple Choice

If expected inflation is constant and the nominal interest rate increased 3 percentage points, the real interest rate would

• A) increase 3 percentage points.
• B) increase, but by less than 3 percentage points.
• C) decrease, but by less than 3 percentage points.
• D) decrease by 3 percentage points.

---

Definitions:

Humanists

Individuals who emphasize human values and concerns, typically focusing on human potential and achievements.

Segregation

The action or state of setting someone or something apart from other people or things or being set apart.

African American Psychologists

Psychologists who are of African American heritage or specifically focus on studying the psychological experiences of African American individuals and communities.

Kenneth and Mamie Clark

Psychologists known for their 1940s experiments using dolls to study children's attitudes about race, influencing the Brown v. Board of Education Supreme Court case.