If the Nominal Interest Rate Is Less Than the Rate

question 129

Multiple Choice

If the nominal interest rate is less than the rate of inflation, the real interest rate:

• A)will be less than zero.
• B)will be equal to the nominal interest rate.
• C)will equal zero.
• D)will be greater than zero.
• E)will be equal to the rate of inflation.

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Definitions:

Attribution Theory

A psychological theory that attempts to explain how individuals determine the causes of others' behavior, attributing it to internal dispositions or to external situations.

Lazy

Characterized by a lack of effort or unwillingness to expend energy in tasks.

Slow Shifts

Gradual changes or movements towards a different state or condition.

Ingratiation

A psychological technique in which an individual attempts to become more appealing to others through flattery or other forms of manipulation.