If You Anticipate That the Inflation Rate Is Going to Rise

question 361

Multiple Choice

If you anticipate that the inflation rate is going to rise from three percent to 10 percent next year, you should

• A)save your funds at a fixed rate of interest.
• B)borrow funds at a fixed rate of interest.
• C)keep your funds in your sock drawer.
• D)wait to buy a house until next year.

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Definitions:

Central Nervous System

The part of the nervous system comprising the brain and spinal cord, responsible for processing and sending out information to the rest of the body.

Limbic System

A complex system of nerves and networks in the brain, involved in various emotional states and biological drives.

Cerebellum

A part of the brain located at the back of the skull in vertebrates, responsible for coordinating muscle movements and maintaining posture and balance.

Repolarization

The process of restoring the negative charge inside a nerve cell after depolarization, essential for the transmission of nerve impulses.