Nominal Interest Rates Are Higher Than Real Interest Rates as Long

question 52

Multiple Choice

Nominal interest rates are higher than real interest rates as long as

• A)expected inflation is positive.
• B)the government taxes interest income.
• C)inflation is expected to decline in the future.
• D)long-term interest rates are higher than short-term interest rates.

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Definitions:

Unit Of Account

A standard numerical monetary unit of measurement that provides a consistent way of valuing goods, services, assets, or liabilities within an economy.

Intrinsic Worth

Intrinsic Worth is the inherent value of something, recognized independently of its value to others or practical utility.

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Government-run facilities responsible for incarcerating individuals convicted of federal crimes.

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Packaging materials made by combining plastic and aluminum foil to enhance preservation and protect contents from external elements.