Which of these trends in the nominal and real interest rates has been observed in the U.S. economy?
a. During the recession of 2009, the nominal interest rate was almost equal to the real interest rate.
b. In the mid 1970s, the nominal interest rate

was very low while the real interest rate was very high.
c. In the mid 1990s, the nominal interest rate was almost equal to the real interest rate.

d. In the 1980s, the real interest rate was very low while the nominal interest rate was very high.

Answer: a