Author Question: The nominal interest rate plus the inflation rate equals the real interest rate. Indicate whether ... (Read 403 times)

Kikoku · **on:** Jun 29, 2018

The nominal interest rate plus the inflation rate equals the real interest rate.

Indicate whether the statement is true or false

Question 2

Explain what scatter diagrams show and why we use them.

What will be an ideal response?

tandmlomax84 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

FALSE

Answer to Question 2

Scatter diagrams plot the value of one economic variable against the value of another variable for a number of different values of each variable. We use scatter diagrams because they quickly reveal if a relationship exists between the two variables. Moreover, if a relationship exists, scatter diagrams show whether increases in one variable are associated with increases or decreases in the other variable.