During Periods of Deflation, the Nominal Interest Rate Will Be​

question 121

Multiple Choice

During periods of deflation, the nominal interest rate will be​

• A)​higher than the real interest rate.
• B)​lower than the real interest rate.
• C)​the same as the real interest rate.
• D)​possibly higher, lower, or the same as the real interest rate.The answer depends on how much deflation there is in the economy.

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