Which of the Statements Below Is FALSE

question 10

Multiple Choice

Which of the statements below is FALSE?

• A)The real interest rate is the reward for waiting.
• B)Nominal interest rates are the sum of two major components: the real interest rate and expected inflation.
• C)The reward for postponing consumption implies that at the end of the year you will be able to buy more goods.
• D)The prices of goods and services tend to decrease over time because of inflation.

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Definitions:

Deliverable State

The condition of a commodity or item being suitable for delivery to fulfill the terms of a contract.

Notified

Being informed or made aware of information, actions, or requirements officially or formally.

Specific Performance

A legal remedy in contracts where the court orders the party who breached the contract to perform the promised duty as outlined in the contract.

Breach of Contract

The failure to perform any term of a contract, written or oral, without a legitimate legal excuse.