Data on Real and Nominal Interest Rates of One-Year U

question 16

Multiple Choice

Data on real and nominal interest rates of one-year U.S.T-Bills show that,over the past twenty years,

• A)the nominal rate has always been less than the real rate.
• B)whenever the nominal rate rises, the real rate falls, and vice versa.
• C)the nominal rate has varied, but the real rate has not.
• D)the real rate has varied, but the nominal rate has not.
• E) the real rate has always been less than the nominal rate.

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