Looking at Real and Nominal Interest Rates in Australia Since

question 12

Multiple Choice

Looking at real and nominal interest rates in Australia since 1971,we see that the

• A)real interest rate has been greater than 10 per cent for most years.
• B)real interest rate has at times been negative.
• C)nominal interest rate has at times been negative.
• D)real interest is generally greater than the nominal interest rate.
• E)real interest rate was above 5 per cent during the low inflation of the 1990s.