When Looking at a Graph of Nominal and Real Interest

question 96

Multiple Choice

When looking at a graph of nominal and real interest rates you notice the graph for nominal rates and the graph for real rates cross each other many times.From this you conclude

• A)consumer prices sometimes rose and sometimes fell in the time frame represented on the graph.
• B)consumer prices were always rising in the time frame represented on the graph.
• C)the economy never experienced a recession in the time frame represented on the graph.
• D)GDP was always increasing for the time frame represented on the graph.

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Definitions:

Brown Algae

A group of photosynthetic, multicellular marine algae, including many seaweeds, in the class Phaeophyceae.

Malaria

A life-threatening disease caused by parasites that are transmitted to people through the bites of infected female Anopheles mosquitoes.

Plasmodium

A genus of parasitic protozoa that causes malaria in humans and other animals, transmitted by the bite of infected Anopheles mosquitoes.

Reproduces

The biological process by which new individual organisms are created from their parents.