If an Economy Experiences Deflation,the Real Interest Rate

question 114

Multiple Choice

If an economy experiences deflation,the real interest rate

• A)will be less than the nominal interest rate.
• B)will be negative when the nominal interest rate is positive.
• C)will be greater than the nominal interest rate.
• D)will be equal to the deflation rate,so long as the nominal interest rate is positive.

---

Definitions:

Bubonic Plague

An infectious disease caused by the bacterium Yersinia pestis, characterized by swollen lymph nodes (buboes), fever, and skin sores. Historically known as "The Black Death."

European Wars

European wars refer to the various conflicts that have occurred within Europe throughout history, shaping its political boundaries, societies, and influence on global affairs.

Agricultural Revolution

A period of significant agricultural development marked by the introduction of new farming techniques and crops, leading to increased food production and population growth.

Natural World

The aspects of the environment that exist independently of human activities.