The Increase in the Interest Rate Due to a Higher

question 59

Multiple Choice

The increase in the interest rate due to a higher expected inflation rate is called the __________ effect.

• A) expectations
• B) Fisher
• C) liquidity
• D) income
• E) a or b

---

Definitions:

Cultural Trade

the exchange of goods, services, ideas, and cultural practices between different societies and cultures.

North American Potlatch

A ceremonial feast or gathering among indigenous peoples of the Pacific Northwest Coast of Canada and the United States, characterized by the distribution of gifts to affirm or establish status and prestige.

Generalized Reciprocity

A mode of exchange in which the value of the gift is not calculated, nor is the time of repayment specified.

Balanced Reciprocity

A mode of exchange in which the giving and the receiving are specific as to the value of the goods and the time of their delivery.