During a Deflationary Period

question 153

Multiple Choice

During a deflationary period

• A)the nominal interest rate is less than the real interest rate.
• B)the real interest rate is less than the nominal interest rate.
• C)the price level rises.
• D)the nominal interest rate does not change.

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Definitions:

Anticoagulant

A substance that prohibits the coagulation of blood.

Antihistamine

A type of medication that blocks histamine, a substance in the body that causes allergy symptoms like itching, swelling, and runny nose.

Duracillin

A brand name for a type of penicillin antibiotic used to treat various bacterial infections.

Coumadin

A medication brand name for warfarin, used to prevent blood clots by thinning the blood.