________ nominal interest rates do ________ indicate that the cost of borrowing is ________.
A) Low; not necessarily; low
B) High; necessarily; high
C) Low; necessarily; low
D) B and C only

Question

Quizplus · Accepted Answer

Nominal interest rates can be low but it does not necessarily mean that the cost of borrowing is also low. Other factors such as inflation and fees associated with borrowing can impact the actual cost of borrowing.

________ Nominal Interest Rates Do ________ Indicate That the Cost

Nominal Interest Rates Do Indicate That the Cost