The Difference Between Nominal and Real Interest Rates Is That

question 74

Multiple Choice

The difference between nominal and real interest rates is that

• A) nominal interest rates are measured in terms of a country's output, while real interest rates are measured in monetary terms.
• B) nominal interest rates are measured in monetary terms, while real interest rates are measured in terms of a country's output.
• C) nominal interest rates can fluctuate, while real interest rates always remain fixed.
• D) real interest rates can fluctuate, while nominal interest rates always remain fixed.
• E) real interest rates are the same in every country, while nominal interest rates are different for every country.