What happened to real interest rates during the early 1930s?

Question

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Real interest rates during the early 1930s rose due to deflation. Deflation is a decrease in the general price level of goods and services in the economy, and during this period, prices were falling at a rapid rate. As a result, even though nominal interest rates were also declining, the real interest rates (which take into account the effect of inflation or deflation) were increasing because the purchasing power of each dollar lent or borrowed was increasing.

What Happened to Real Interest Rates During the Early 1930s