Considering the Data on Real and Nominal Interest Rates for the U.S

question 27

Multiple Choice

Considering the data on real and nominal interest rates for the U.S. from 1979 to 2012, which of the following statements is most accurate?

• A) The real interest rate remains unchanged over time.
• B) There have been times when the real interest rate has been negative.
• C) Nominal interest rates higher in 2000 than they had been at any other point in time.
• D) The inflation rate is always greater than the real interest rate.

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