Two Identical Blocks of Ice Float in Water as Shown

question 44

Multiple Choice

Two identical blocks of ice float in water as shown. Then:

• A) block A displaces a greater volume of water since the pressure acts on a smaller bottom area
• B) block B displaces a greater volume of water since the pressure is less on its bottom
• C) the two blocks displace equal volumes of water since they have the same weight
• D) block A displaces a greater volume of water since its submerged end is lower in the water
• E) Block B displaces a greater volume of water since its submerged end has a greater area

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Definitions:

Monetary Neutrality

The economic theory that changes in the money supply only affect nominal variables and have no effect on real variables such as output or unemployment in the long run.

Fisher Effect

An economic theory proposing that the real interest rate is independent of monetary measures, specifically that the nominal interest rate adjusts to expected inflation.

Nominal Interest Rate

The rate of interest on a loan or investment without adjusting for inflation.

Money Growth Rate

The rate at which the total amount of money in an economy grows over a specific period, often considered a factor influencing inflation.