Multiple Choice
If the nominal interest rate is greater than the real interest rate,
A) it is an indication of economic growth.
B) the real interest rate must be negative.
C) inflation must be occurring.
D) lenders must lose because they can only make loans using the real interest rate.
E) None of the above answers is correct because it is not possible for the nominal interest rate to exceed the real interest rate.
Correct Answer:
Verified
Correct Answer:
Verified
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