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Some Countries Have Negative Nominal Interest Rates

Question 31

Multiple Choice

Some countries have negative nominal interest rates. Which of the following statements about this situation is not true?


A) A saver or lender will get back less than the amount she invested.
B) This is mostly a result of deliberate central bank policies.
C) Consumers are expected to save more and consume less.
D) Consumers are expected to borrow more and spend more.

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