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

Question

Quizplus · Accepted Answer

The real interest rate is lower in Australia compared to Zimbabwe because there is a lower risk premium in Australia. This is due to Australia's more stable economic and political environment, which reduces the risk for lenders.

The Real Interest Rate Is ________ in Australia Compared to Zimbabwe