A. nominal interest rate is equal to the expected inflation rate plus the equilibrium real interest rate.
Inflation can be defined as the persistent general rise in the price of goods and services in an economy at a specific period of time.
Generally, inflation usually causes the value of money to fall and as a result, it imposes more cost on an economy.
When this persistent rise in the price of goods and services in an economy becomes rapid, excessive, unbearable and out of control over a period of time, it is generally referred to as hyperinflation.
The Fisher effect states that the nominal interest rate is equal to the expected inflation rate plus the equilibrium real interest rate.
Thus, the real interest rate in a particular country's economy equals the nominal interest rate minus the expected inflation rate.
All things being equal (Ceteris paribus), the expected inflation rate of a country's economy would eventually cause an equal rise in the interest rate that the deposits of the country's currency can offer. Also, as inflation increases, the real interest rate falls or decreases.
Answer is option C i.e. Members are linked by their work in a particular industry.
An industrial union is a type of trade union where the members are workers from the same industry regardless of the skills they possess. This union comprises all the skilled as well as unskilled workers who belong to the same industry, say the Cotton industry.
The doubling of inputs would increase the cost of production. It would also increase the quantity of output produced. If the average cost of production is decreasing with the increase in output level, this is an indicator of the economies of scale.
Economies of scale is the cost advantage due to large scale of production.
E. Faced with a negative population growth rate, the country relaxed immigration control norms 25 years ago.
Given that<u> immigrants increase the population</u> and that they may come from a less healthy environment, having a less healthy background is very common for them. Even if the domestic population had a high average height, t<u>he mean value will surely decrease</u> to the lower height of the immigrants.
Therefore, a correlation between economic growth and average health measured by height can be undermined, given E) is true.