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:

Location-Based Services

Digital services that use geographic data and information to provide users with relevant content or functionalities based on their location.

Campaigns

Organized efforts or strategies undertaken by businesses or organizations to achieve specific goals, such as promoting a product or raising awareness on an issue.

Pictorial Communication

The use of images and visual elements to convey messages and information.

Emojis

Small digital images or icons used to express ideas, emotions, or reactions in electronic communications.