How Is It Possible for Real Rates of Return to Increase

question 56

Multiple Choice

How is it possible for real rates of return to increase during times when the rate of inflation increases?

• A) Inflation increased more than the real return.
• B) Nominal returns actually decreased.
• C) Nominal returns increased more than inflation.
• D) Nominal returns increased less than inflation.

---

Definitions:

Legislation

Laws and regulations enacted by governing bodies to direct behavior, activities, or the layout of systems within a given jurisdiction.

Copper Wire

A conductive wire made from copper, commonly used in electrical wiring due to its high conductivity and flexibility.

Rosin Core

A type of solder with a core of rosin flux, used in electrical soldering to improve the solder's adhesion and electrical conductivity.

Silver Solder

An alloy used in soldering that contains silver, providing stronger joints compared to traditional solder due to its higher melting point.