Multiple Choice
Which of the following statement is false?
A) Nominal interest rate can be either positive, zero, or negative.
B) The expected real interest rate can be either positive, zero, or negative.
C) The expected real interest rate is the correct interest rate to use for studying people's decisions about how much to borrow or lend.
D) Nominal interest rate must exceed the expected real interest rate as long as there is a positive expected inflation rate.
Correct Answer:
Verified
Correct Answer:
Verified
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