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:

Feelings Of Ineffectiveness

The sense or belief that one's actions are not producing the desired effect or are lacking in competence and power.

Cognitive Behavioral Therapy

A psychological treatment aimed at modifying negative thoughts and behaviors by challenging and changing unhelpful cognitive distortions.

Negative Thought Patterns

Repetitive and persistent thoughts that are pessimistic or detrimental to wellbeing and self-esteem.

Psychoanalytic Therapy

A form of psychotherapy based on Freudian theories, focusing on unconscious processes and the patient's early life experiences.