When There Is Positive Inflation

question 56

Multiple Choice

When there is positive inflation

• A) the nominal interest rate is approximately equal to the real interest rate.
• B) the real interest rate is greater than the nominal interest rate.
• C) the nominal interest rate is greater than the real interest rate.
• D) the real interest rate is negative.

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Definitions:

Taft-Hartley Act

A U.S. federal law enacted in 1947 that restricts the activities and power of labor unions.

Sherman Antitrust Act

A landmark federal statute passed in the United States in 1890 aimed at preserving free competition by prohibiting monopolistic business practices.

Government Employee

An individual who works within the public sector, employed by government departments or agencies.

Right-to-Work State

A U.S. state where laws prohibit union security agreements between companies and workers' unions, meaning employment cannot be conditioned on union membership or dues payment.