If the Nominal Interest Rate Is Greater Than the Real

question 32

Multiple Choice

If the nominal interest rate is greater than the real interest rate,

• A) it is an indication of economic growth.
• B) the real interest rate must be negative.
• C) inflation must be occurring.
• D) lenders must lose because they can only make loans using the real interest rate.
• E) None of the above answers is correct because it is not possible for the nominal interest rate to exceed the real interest rate.

---

Definitions:

Racial Diversity

The inclusion and representation of individuals from a variety of racial and ethnic backgrounds in a group or organization.

Ethnic Diversity

Ethnic diversity refers to the presence of multiple ethnic groups within a given society, each with its distinct culture, traditions, and sometimes language.

Genocide

The deliberate and systematic extermination of a racial, ethnic, national, or cultural group.

Tutsis

An ethnic group in Rwanda and Burundi, who were historically one of the principal groups involved in the region's social and political dynamics.