The Nominal Rate of Interest Tends to Rise During Time

question 219

Multiple Choice

The nominal rate of interest tends to rise during time of inflation because

• A)lenders require a higher rate in order to loan out money.
• B)borrowers are willing to pay a higher rate to obtain loans.
• C)loans are taken in "cheap" dollars but paid back in dollars of greater purchasing power.
• D)lenders require a higher rate in order to loan out money AND borrowers are willing to pay a higher rate to obtain loans.

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Definitions:

Multi-Communicating

The practice of engaging in communication with multiple parties simultaneously, often through various digital platforms or channels.

Computer-Mediated Communication

Exchange of messages between two or more people through digital devices rather than face-to-face interaction.

Sensory Demand

The requirement for engaging the senses to process and respond to environmental stimuli.

Information Overload

The state of being overwhelmed by the amount of information one is exposed to, making it difficult to process or make decisions.