As Long as Prices Are Rising Over Time, Then

question 20

Multiple Choice

As long as prices are rising over time, then

• A)the nominal interest rate exceeds the real interest rate.
• B)the real interest rate exceeds the nominal interest rate.
• C)the real interest rate is positive.
• D)the nominal interest rate is a better indicator than the real interest rate of how fast the purchasing power of your bank account is changing over time.

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Definitions:

Fraternal Twin

Twins that develop from two different eggs fertilized by two different sperm, resulting in siblings that are genetically distinctive, similar to regular siblings.

Identical Twin

A twin that has developed from a single fertilized egg, dividing into two, and sharing exactly the same genetic material.

Mastery Motivation

An intrinsic drive to achieve competence and mastery over tasks, leading to perseverance and dedication to learning and improvement.

Achievement Motivation

The drive or urge to accomplish goals or attain certain standards of excellence.