How Did the Real Interest Rates Paid on Long-Term Government

question 152

Multiple Choice

How did the real interest rates paid on long-term government debt in Canada and the United States compare with each other over the period from 1984 to 2009?

• A)The average real interest rate was 3.4 percent in Canada and 4.4 percent in the United States.
• B)The average real interest rate was 4.4 percent in Canada and 3.4 percent in the United States.
• C)The average real interest rate was 5.7 percent in Canada and 6.7 percent in the United States.
• D)The real interest rates paid on long-term government debt in Canada and the United States have tended to move in opposite directions.

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Definitions:

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