Multiple Choice
When deflation occurs,
A) the real interest rate is greater than the nominal interest rate.
B) the nominal interest rate is greater than the real interest rate.
C) the nominal interest rate is equal to the real interest rate and inflation is negative.
D) the nominal interest rate is equal to the real interest rate and inflation is positive.
E) the real interest rate is positive while the nominal interest rate is negative.
Correct Answer:
Verified
Correct Answer:
Verified
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