The Nominal Interest Rate Indicates That

question 3

Multiple Choice

The nominal interest rate indicates that:

• A)people care only about the number of dollars.
• B)people care about what dollars can buy.
• C)people want compensated only for inflation.
• D)people only require the opportunity cost as payment when lending.

---

Definitions:

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity of that good or service that a seller is willing and able to supply in the market.

Supply

The total amount of a product or service available for purchase by consumers.

Wages

Payments made to workers for their services, typically calculated on an hourly, daily, or piecework basis.

Taxes

Compulsory contributions to state revenue, levied by the government on workers' income and business profits, or added to the cost of some goods, services, and transactions.