Which of the Following Statements About Real and Nominal Interest

question 85

Multiple Choice

Which of the following statements about real and nominal interest rates is correct?

• A)Real interest rates can be either positive or negative,but nominal interest rates must be positive.
• B)Real interest rates and nominal interest rates must be positive.
• C)Real interest rates must be positive,but nominal interest rates can be either positive or negative.
• D)Real interest rates and nominal interest rates can be either positive or negative.

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Definitions:

Logistic Regression Model

A statistical model that estimates the probability of a binary outcome based on one or more predictor variables.

Logistic Regression Model

A statistical model used to predict a binary outcome (such as yes/no, success/failure) based on one or more predictor variables.

Hypotheses

Assumptions or propositions that are subject to verification or falsification through scientific methods.

Indicator Variable

A variable used in statistics and econometrics that takes on a value of 1 if a specific condition is true and 0 if it is not.