Multiple Choice
When looking at a graph of nominal and real interest rates you notice that nominal rates always lie above real rates.From this you conclude
A) there were serious episodes of deflation in the time frame represented on the graph.
B) consumer prices were always rising in the time frame represented on the graph.
C) the economy never experienced a recession in the time frame represented on the graph.
D) GDP was always increasing for the time frame represented on the graph.
Correct Answer:

Verified
Correct Answer:
Verified
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