Examlex
Which of the following can activate the arousal system?
Friedman Rule
A monetary policy rule proposed by economist Milton Friedman, suggesting that the optimal nominal interest rate is zero to eliminate the opportunity cost of holding money.
Deflation
A decrease in the general price level of goods and services, often indicating an economic slowdown.
Inflation
The velocity at which the aggregate price level for goods and services elevates, thereby reducing purchasing capability.
Nominal Interest Rate
The interest rate before adjustments for inflation. It is the rate quoted on loans and deposits.
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