Multiple Choice
Which of the following statements is correct?
A) If the rate of inflation is high,the nominal rate of interest must be low.
B) If the rate of inflation is less than the nominal interest rate,the real interest rate is positive.
C) If the real interest rate is less than the nominal interest rate,inflation must be zero.
D) If the real interest rate is less than the nominal interest rate,inflation must be negative.
E) If the nominal interest rate is high,the real interest rate must be high.
Correct Answer:

Verified
Correct Answer:
Verified
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