Since the global financial crisis in 2007-09, real interest rates have been negative. This means that inflation is eroding people's savings more quickly than ________ are increasing their savings.
A) retail payments
B) consumer interest payments
C) nominal interest payments
D) nominal interest rates

Question

Quizplus · Accepted Answer

Nominal interest payments are the payments made on a loan or investment before adjusting for inflation. Since the global financial crisis in 2007-09, real interest rates have been negative, meaning that inflation is eroding people's savings more quickly than nominal interest payments are increasing their savings.

Since the Global Financial Crisis in 2007-09, Real Interest Rates