Assume Inflation Is Occurring in a Nation; the Implication(s)

Multiple Choice

Assume inflation is occurring in a nation; the implication(s)

A) are that both real and nominal interest rates are positive.
B) are that both real and nominal interest rates are negative.
C) is that the nominal interest rate exceeds the real interest rate.
D) is that the real rate of interest exceeds the nominal rate of interest.
E) is that time preferences in the nation have risen.