When Deflation Exists

question 6

Multiple Choice

When deflation exists,

• A)the real interest rate is less than the nominal interest rate.
• B)the real interest rate is greater than the nominal interest rate.
• C)the real interest rate and inflation are less than the nominal interest rate.
• D)prices rise.

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Definitions:

Shale

A fine-grained sedimentary rock formed from clay and silt-sized particles, often easily split into thin, parallel layers.

Impermeable Layers

Geological strata that do not allow the passage of water or fluids due to their tightly packed nature.

Permeable Rocks

Rocks that contain pores or cracks through which fluids such as water can easily pass.

Oil And Gas

Natural hydrocarbon resources extracted from the Earth, used as fuels and in the production of various chemicals and materials.