If the Inflation Rate Is Zero, Then the Nominal and Real

question 202

True/False

If the inflation rate is zero, then the nominal and real interest rate are the same.

---

Definitions:

Deadweight Loss

The loss of economic efficiency that occurs when the equilibrium outcome is not achievable due to market failure or interventions.

Elasticity

A measure of how much the quantity demanded or supplied of a good responds to changes in price, income, or other factors.

Demand

The desire to purchase goods and services backed by the ability and willingness to pay a price.

Elasticity

A measure of how much the quantity demanded or supplied of a good responds to a change in one of its determinants, such as the price.