Refer to the Following Figure When Answering the Following Questions

Multiple Choice

Refer to the following figure when answering the following questions.
Figure 14.3: AS/AD Model

-Consider Figure 14.3. Between 2006 and 2007 the:

A) real interest rate was negative.
B) 10-year-bonds' nominal interest rate was lower than inflation.
C) real interest rate was higher than the nominal interest rate.
D) real interest rate was positive.
E) None of these answers is correct.