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When Looking at a Graph of Nominal and Real Interest

Question 96

Multiple Choice

When looking at a graph of nominal and real interest rates you notice the graph for nominal rates and the graph for real rates cross each other many times.From this you conclude


A) consumer prices sometimes rose and sometimes fell in the time frame represented on the graph.
B) consumer prices were always rising in the time frame represented on the graph.
C) the economy never experienced a recession in the time frame represented on the graph.
D) GDP was always increasing for the time frame represented on the graph.

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