As Long as Prices Are Rising Over Time, Then

question 20

Multiple Choice

As long as prices are rising over time, then

• A)the nominal interest rate exceeds the real interest rate.
• B)the real interest rate exceeds the nominal interest rate.
• C)the real interest rate is positive.
• D)the nominal interest rate is a better indicator than the real interest rate of how fast the purchasing power of your bank account is changing over time.

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Definitions:

White People

Individuals belonging to racial groups characterized by lighter skin tones, often associated with European descent.

Republican Party

A major political party in the United States, founded in 1854, that traditionally supports conservative and pro-business policies.

1790s

A decade marked by significant political and social change around the world, including the French Revolution and the early years of the United States under its new constitution.

Alexander Hamilton

A Founding Father of the United States, first Secretary of the Treasury, and key author of the Federalist Papers.