During the 1970s, Canada experienced an unusual pattern of interest rates. During this period
A)the nominal and real interest rates were equal to each other.
B)the inflation rate was negative, implying a nominal interest rate higher than the real interest rate.
C)the inflation rate exceeded the nominal interest rate, implying a negative real interest rate.
D)the inflation rate was negative, implying a real interest rate that was higher than the nominal interest rate.
E)the nominal interest rate was less than the real interest rate.

Question

Quizplus · Accepted Answer

During the 1970s, Canada experienced high inflation rates that sometimes exceeded the nominal interest rates, leading to negative real interest rates.

During the 1970s, Canada Experienced an Unusual Pattern of Interest