When There Is High Inflation

question 13

Multiple Choice

When there is high inflation

• A) interest rates fall due to government policy.
• B) the real interest rate is always greater than the nominal interest rate.
• C) the nominal interest rate is always greater than the real interest rate.
• D) the real interest rate is always negative.
• E) the nominal interest rate is approximately equal to the real interest rate.

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Definitions:

Asset Account

Represents tangible and intangible items of value owned by a company, showing up on the balance sheet.