Compared to the Nominal Interest Rate, the Real Interest Rate

question 36

Multiple Choice

Compared to the nominal interest rate, the real interest rate is:

• A) negative.
• B) always smaller.
• C) always greater than zero.
• D) relatively stable.
• E) relatively volatile.

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Definitions:

Diaphragm

A dome-shaped muscular partition separating the thorax from the abdomen in mammals, playing a major role in breathing by contracting and expanding the lungs.

Epiglottis

The flap-like structure that closes off the larynx during swallowing.

Larynx

The part of the respiratory tract between the pharynx and the trachea that is responsible for voice production; also called the voice box.

Palate

The roof of the mouth.