Which of the Following Is Not Correct

question 5

Multiple Choice

Which of the following is not correct?

• A)If the inflation rate exceeds the nominal interest rate,then the purchasing power of an interest-earning deposit falls over time.
• B)If there is deflation,then the purchasing power of an interest-earning deposit rises by more than the nominal interest rate over time.
• C)The higher the rate of inflation,the smaller the increase in the purchasing power of an interest-earning deposit.
• D)The purchasing power of an interest-earning deposit can increase or decrease over time,but it cannot stay the same.

---

Definitions:

Ants

Small insects that live in highly organized colonies, often exhibiting complex social behaviors.

Secondary Succession

A new community becomes established in a site where a community previously existed.

Abandoned Field

Land that was previously cultivated but has been left unused for agricultural production.

Glacial Retreat

The process in which glaciers lose ice mass and shrink in size, often due to rising temperatures.