Multiple Choice
Which of the following would cause the real interest rate to be negative?
A) When the nominal interest rate is greater than the inflation rate
B) When the nominal interest rate is greater than the rate of deflation
C) When the nominal interest rate is smaller than the rate of deflation
D) When the nominal interest rate is smaller than the inflation rate
E) When the nominal interest rate is equal to the inflation rate
Correct Answer:
Verified
Correct Answer:
Verified
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