When Prices Are Rising, Which of the Following Will Be

question 228

Multiple Choice

When prices are rising, which of the following will be true?

• A)The real interest rate will be lower than the nominal interest rate.
• B)The real interest rate will be negative.
• C)The real interest rate will be higher than the nominal interest rate.
• D)The nominal interest rate will be negative.
• E)The nominal interest rate will be lower the real interest rate.

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