If we look at real and nominal interest rates in the United States since 1971, we see that
A) the real interest rate has almost always been less than the nominal interest rate because of inflation.
B) at times the nominal interest rate has been greater than the real interest rate and at times has been less than it.
C) the difference between the nominal and real interest rates has widened during the 1990s because of inflation.
D) the nominal interest rate has always been less than the real interest rate because of inflation.
E) both the nominal and real interest rates were negative in the highly inflationary 1970s.
A
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With a lump-sum tax,the average tax rate for high income taxpayers will be
a. the same as the average tax rate for low income taxpayers. b. lower than the average tax rate for low income taxpayers. c. higher than the average tax rate for high income taxpayers. d. Any of the above could be true under a regressive tax system.
If a person who weighs 100 lbs. is riding in an elevator and is joined by a person weighing 120 lbs., what happens to the average weight of persons on the elevator?
A. It falls. B. It rises. C. It stays the same.