If the Nominal Interest Rate Is Greater Than the Real

question 132

Multiple Choice

If the nominal interest rate is greater than the real interest rate in an economy,________.

• A) the inflation rate must be positive in the economy
• B) the inflation rate must be negative in the economy
• C) the inflation rate must be zero in the economy
• D) the real interest rate in the economy must be negative

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Definitions:

Electron

A negatively charged subatomic particle present in every atom that primarily facilitates the flow of electricity in solid materials.

Boron

A metalloid element with the symbol B, essential for plant growth and used in fiberglass and borosilicate glass.

Protons

Positively charged subatomic particles found in the nucleus of an atom, contributing to the atom's mass and charge.

Ca

The elemental symbol for Calcium, a soft gray alkaline earth metal with atomic number 20.