When Looking at a Graph of Nominal and Real Interest

question 96

Multiple Choice

When looking at a graph of nominal and real interest rates you notice the graph for nominal rates and the graph for real rates cross each other many times.From this you conclude

• A)consumer prices sometimes rose and sometimes fell in the time frame represented on the graph.
• B)consumer prices were always rising in the time frame represented on the graph.
• C)the economy never experienced a recession in the time frame represented on the graph.
• D)GDP was always increasing for the time frame represented on the graph.

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Definitions:

Volatile

Characterized by or subject to rapid or unexpected change, especially in relation to emotions or reactions.

Characterized by Warmth

Described or distinguished by a friendly, affectionate, or kindly nature.

Closeness

The degree of intimacy or emotional connection between individuals.

Sharing

The act of giving a portion of what one has to others, encompassing both physical items and intangible aspects like thoughts and feelings.