Which of the Following Is True About the Nominal and Real

question 95

Multiple Choice

Which of the following is true about the nominal and real interest rates?

• A)Changes in the nominal interest rate are smoother than the real interest rate.
• B)The real interest rate can be higher than the nominal interest rate.
• C)The nominal and the real interest rates always move together.
• D)The nominal interest rate is always positive,but the real interest rate can be negative.

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Definitions:

Dishonored

A term used to describe a financial instrument, such as a check or promissory note, that has been refused acceptance or payment.

Personal Defense

A liability defense that is not applicable to holders in due course.

Modification

A change or alteration, often to a contract or agreement, altering its terms or conditions.

Dishonored

Referring to a financial instrument, such as a check or promissory note, that is not accepted or paid when presented for payment.