When Inflation Rises,the Nominal Interest Rate

question 29

Multiple Choice

When inflation rises,the nominal interest rate

• A)rises,and people desire to hold more money.
• B)rises,and people desire to hold less money.
• C)falls,and people desire to hold more money.
• D)falls,and people desire to hold less money

---

Definitions:

Cocoa

A powder made from roasted and ground cacao seeds, used in the production of chocolate, as well as in beverages and baking.

Consumption

The process by which goods and services are used up by consumers, reflecting economic activity and individuals' preferences.

Income

Financial gains received from work or investments, usually on a consistent basis.

Demand

The quantity of a good or service consumers are willing and able to purchase at a given price level.