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For This Question,assume That Expected Inflation Is Zero

Question 27

Multiple Choice

For this question,assume that expected inflation is zero.In this situation,we know that


A) the nominal and real interest rates are equal.
B) the nominal interest rate will exceed the real interest rate.
C) the real interest rate will exceed the nominal interest rate.
D) the real interest will be zero.
E) the real interest rate is negative.

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