The Nominal Interest Rate Can Be Negative If

question 29

Multiple Choice

The nominal interest rate can be negative if:

• A) the real interest rate is negative.
• B) inflation is variable.
• C) the inflation rate is greater than the nominal interest rate.
• D) inflation is unexpected.
• E) None of the above.

---

Definitions:

Clinical Depression

A psychological condition marked by a continuously low mood or a lack of enthusiasm for activities, leading to considerable disruption in daily functioning.

Dehydration

A condition resulting from excessive loss of body water, affecting the body's normal functions.

Memory Loss

The inability to remember information or experiences, which can be temporary or permanent, and is often associated with aging or brain injury.

Distractibility

A condition or state in which an individual has difficulty concentrating or focusing on a task due to attention being easily diverted.