Which of the Following Is Not Correct

question 13

Multiple Choice

Which of the following is not correct?

• A)The U.S.economy has never experienced deflation.
• B)Since 1965,the U.S.nominal interest rate has exceeded the U.S.real interest rate.
• C)Since 1965,the U.S.economy has experienced rising consumer prices in most years.
• D)During deflation,the real interest rate exceeds the nominal interest rate.

---

Definitions:

Economic Profits

The variance between total income and the aggregate of explicit and implicit costs for a business.

General Equilibrium

A state in an economy where all markets are in equilibrium simultaneously, and the decisions of consumers and producers are perfectly coordinated.

Pareto Efficiency

An economic state where resources are allocated in a way that it is impossible to make one individual better off without making another individual worse off.

Simultaneous Equilibrium

A situation in which multiple markets or economic variables reach equilibrium at the same time, with interdependencies considered.