If the Real Interest Rate Was Negative for a Period

question 63

Multiple Choice

If the real interest rate was negative for a period of time, then

• A) inflation is expected to exceed the nominal interest rate in the future.
• B) inflation is expected to be less than the nominal interest rate in the future.
• C) actual inflation was less than the nominal interest rate.
• D) actual inflation was greater than the nominal interest rate.

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