When Looking at a Graph of Nominal and Real Interest

question 14

Multiple Choice

When looking at a graph of nominal and real interest rates you notice that nominal rates always lie above real rates.From this you conclude

• A)there were serious episodes of deflation 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:

Interstitial

Relating to spaces or interstices within a tissue or organ, often referred to in a medical or biological context.

Intracellular

Located or occurring within a cell or cells.

Body Fluid

Liquids originating from inside the bodies of living organisms, which include substances like blood, urine, and lymph, playing essential roles in their physiology.

Respiratory Acidosis

A medical condition wherein the lungs cannot remove all of the carbon dioxide the body produces, leading to a disturbed acid-base balance.