Looking at Real and Nominal Interest Rates in the United

question 80

Multiple Choice

Looking at real and nominal interest rates in the United States since 1968, we see that the

• A) nominal interest rate has at times been negative.
• B) real interest rate has been greater than 10 percent for most years.
• C) real interest rate has at times been negative.
• D) real interest rate was above 5 percent during the low inflation of the 1970s.
• E) real interest is generally greater than the nominal interest rate.

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Definitions:

Problem Solving

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