When Looking at a Graph of Nominal and Real Interest

question 96

Multiple Choice

When looking at a graph of nominal and real interest rates you notice the graph for nominal rates and the graph for real rates cross each other many times.From this you conclude

• A)consumer prices sometimes rose and sometimes fell in the time frame represented on the graph.
• B)consumer prices were always rising in the time frame represented on the graph.
• C)the economy never experienced a recession in the time frame represented on the graph.
• D)GDP was always increasing for the time frame represented on the graph.

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Definitions:

UCC

The Uniform Commercial Code, a set of comprehensive statutes designed to unify and standardize sales and commercial transactions in all 50 states.

Counteroffer

A new offer made in response to an offer received, implying rejection of the original offer.

Finance Charge

the total cost, expressed as a monetary amount, of borrowing credit, including interest, fees, and any other charges associated with the transaction.

Rejection

The refusal to accept or agree to something, such as a proposal, offer, or contract.