The real interest rate is in the United States compared to Zimbabwe because .
A) higher; Zimbabwe is a net borrower.
B) lower; the United States is a net borrower.
C) higher; more firms want to borrow financial capital in the United States.
D) lower; there is a lower risk premium in the United States.

Question

Quizplus · Accepted Answer

The real interest rate is lower in the United States because there is a lower risk premium compared to Zimbabwe, which typically has higher inflation and economic instability, leading to higher interest rates.

The Real Interest Rate Is in the United States Compared