When Deflation Occurs

question 131

Multiple Choice

When deflation occurs,

• A)the real interest rate is greater than the nominal interest rate.
• B)the nominal interest rate is greater than the real interest rate.
• C)the nominal interest rate is equal to the real interest rate and inflation is negative.
• D)the nominal interest rate is equal to the real interest rate and inflation is positive.
• E)the real interest rate is positive while the nominal interest rate is negative.

---

Definitions:

Child-free

The decision by individuals or couples not to have children, either for personal, environmental, or other reasons.

Representative

A person chosen or appointed to act or speak for another or others, typically in a political or organizational context.

Real Families

A concept emphasizing the diversity of family structures, challenging the traditional notion of a family being composed of two heterosexual parents and their biological children.

Primary Group

A small group of people who are characterized by close, long-lasting, intimate, and face-to-face interaction.