In the United States for the last 40 years, the nominal interest rate
A) and the real interest rate both decreased in almost every year.
B) and the real interest rate were both constant in almost every year.
C) was constant in most years and the real interest rate fluctuated.
D) exceeded the real interest rate in virtually all the years.
E) exceeded the real interest rate in about one half of the years and the real interest rate was greater than the nominal interest rate in the other half of the years.
D
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A bank run at a bank often triggers a chain reaction of runs on other banks in an economy
a. True b. False Indicate whether the statement is true or false
When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline