If Expected Inflation Is Constant, Then When the Nominal Interest

question 162

Multiple Choice

If expected inflation is constant, then when the nominal interest rate falls, the real interest rate

• A) falls by more than the change in the nominal interest rate.
• B) falls by the change in the nominal interest rate.
• C) rises by the change in the nominal interest rate.
• D) rises by more than the change in the nominal interest rate.

---

Definitions:

Group Norm

Accepted standards or behaviors shared by a group's members that guide their actions and decisions.

Injunctive Norm

Socially accepted rules or standards that dictate what is considered appropriate or inappropriate behavior within a group or society.

Reciprocal

Pertains to mutual exchange or influence between individuals or groups, where actions or benefits are given and received in turn.

Facebook

A social media platform that allows users to connect with friends and family, share content, and participate in various groups and activities.