Whenever the Expected Inflation Rate Is Positive

question 75

Multiple Choice

Whenever the expected inflation rate is positive

• A)the real interest rate is greater than the nominal interest rate.
• B)the real interest rate is negative.
• C)the real interest rate is positive.
• D)the nominal interest rate must be equal to the real interest rate.
• E) none of the above

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Definitions:

Seventeenth Amendment

Progressive reform passed in 1913 that required U.S. senators to be elected directly by voters; previously, senators were chosen by state legislatures.

Federal Income Tax

A tax levied by the United States federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

U.S. Senators

Elected officials who serve in the United States Senate, one of the two chambers of the United States Congress, representing their respective states and responsible for making federal laws.

Progressive Reformers

Early 20th-century activists in the United States who sought to address social inequities, corruption, and economic issues through government intervention.