Looking at Real and Nominal Interest Rates in the United

question 268

Multiple Choice

Looking at real and nominal interest rates in the United States since 1971,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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