If the Real Interest Rate Is Negative, It Must Mean

Multiple Choice

If the real interest rate is negative, it must mean that:

A) in the short run, bond rates can be very volatile.
B) in the short run, the real interest rate equals the marginal product of capital.
C) in the short run, the real interest rate can deviate from the marginal product of capital.
D) it is difficult to predict long-term interest rates.
E) there is no relationship between long- and short-term interest rates.