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.

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Definitions:

Neurotransmitters

Chemical substances released at the end of a nerve fiber by the arrival of a nerve impulse, facilitating the transmission of impulses across synapses to another nerve, muscle, or gland.

Synapse

(SIN-aps) The junction where the axon terminal of a sending neuron communicates with a receiving neuron across the synaptic cleft.

Resting Potential

The slight negative electrical potential of the axon membrane of a neuron at rest, about –70 millivolts.

At Rest

A state where an object or individual is not in motion, or is experiencing mental or physical tranquility.