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:

Eidetic Image

A vivid and detailed mental image, often referred to as a "photographic memory."

Déjà Vu

A feeling of having already experienced the present situation.

Jamais Vu

The sensation of seeing or experiencing something for the first time, despite logically knowing you have encountered it before.

Dissociative Amnesia

A mental health disorder characterized by the inability to recall important personal information, usually after a traumatic or stressful event, that cannot be explained by ordinary forgetfulness.