Evaluate the following statement: If the current market price of corn is $100 per bushel and the nominal rate of interest is 10 percent, then the nominal price of corn next period should also be $100.

Question

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The nominal price of corn next period is likely to change due to the nominal rate of interest and other market factors. If the nominal rate of interest is 10 percent, it suggests inflation or a change in money value, which could lead to an increase in the nominal price of corn, not keeping it constant at $100.

Evaluate the Following Statement: If the Current Market Price of Corn