Real Rates Are

question 22

Multiple Choice

Real rates are:

• A)the same as nominal or stated rates.
• B)calculated on the basis of the nominal rate reduced by the stated rate.
• C)inflation rates.
• D)not observed or stated but rather the nominal rate reduced by the rate of inflation.

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Definitions:

Planetary Sun Gear

The central gear in a planetary gear system around which the planet gears revolve and are geared to.

Fluid Coupling

A hydrodynamic device used to transmit rotating mechanical power, relying on the transfer of energy through fluid motion.

Torque Converter

A type of fluid coupling used in automatic transmissions to allow the engine to spin somewhat independently of the transmission output, facilitating smooth vehicle acceleration.

Lock-up Mode

A function in automatic transmissions that directly connects the engine to the transmission to improve fuel efficiency and reduce slippage.