Which of the Following Statements Is Correct

question 77

Multiple Choice

Which of the following statements is correct?

• A)If the rate of inflation is high,the nominal rate of interest must be low.
• B)If the rate of inflation is less than the nominal interest rate,the real interest rate is positive.
• C)If the real interest rate is less than the nominal interest rate,inflation must be zero.
• D)If the real interest rate is less than the nominal interest rate,inflation must be negative.
• E)If the nominal interest rate is high,the real interest rate must be high.

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Virtual Team

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Viewing or judging other cultures solely by the standards and values of one's own culture.

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