Which of the Statements Below Is FALSE

question 10

Multiple Choice

Which of the statements below is FALSE?

• A)The real interest rate is the reward for waiting.
• B)Nominal interest rates are the sum of two major components: the real interest rate and expected inflation.
• C)The reward for postponing consumption implies that at the end of the year you will be able to buy more goods.
• D)The prices of goods and services tend to decrease over time because of inflation.

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Definitions:

Syncline

A fold in rock layers where the youngest layers are closer to the center of the structure, typically shaped like a trough.

Limestone

A sedimentary rock composed primarily of calcium carbonate (CaCO3) in the form of the mineral calcite, often formed from the skeletal fragments of marine organisms.

Sandstone

A sedimentary rock composed mostly of sand-sized minerals or rock grains.

Shales

Fine-grained sedimentary rocks formed from silt and clay particles, known for their ability to split into thin layers.