The Tendency for Nominal Interest Rates to Be High When

question 130

Multiple Choice

The tendency for nominal interest rates to be high when inflation is high and low when inflation is low is known as:

• A)the consumer price index.
• B)deflating.
• C)shoe leather costs.
• D)the Fisher effect.

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Definitions:

Human Capital

The qualifications, know-how, and lived experiences of a person or society, assessed in terms of their profitability or cost to a business or country.

Compensating Differential

The additional amount of income that a worker requires to accept a job with undesirable features, compared to a similar job with more favorable features.

Cardiologist

A specialist doctor who diagnoses and treats conditions related to the heart and blood vessels.

Human Capital

Competencies, wisdom, and learning acquired by an individual or collective, evaluated for their financial or beneficial impact on an enterprise or sovereign state.