When Deflation Occurs

question 252

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.

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Definitions:

Cognitive Dissonance

The mental discomfort experienced by a person who holds two or more contradictory beliefs, values, or ideas.

Integration

The process of combining or coordinating separate elements or substances to create a unified whole, often used in reference to social and psychological processes.

Minority Person

An individual belonging to a segment of a population that differs from the majority in cultural, national, racial, religious, linguistic, or sexual characteristics.

Dominant Culture

The culture of the most powerful, widespread, or influential group within a society that sets norms and standards.