Realized real interest rates in the United States were the highest in the
A)1960s.
B)1970s.
C)1980s.
D)1990s.

Question

Quizplus · Accepted Answer

The real interest rates were the highest in the 1980s due to the increase in inflation during the late 1970s and early 1980s, which led the Federal Reserve to raise nominal interest rates to combat inflation. This resulted in high real interest rates. In the 1960s and 1970s, inflation was relatively low, and real interest rates were not as high as in the 1980s. In the 1990s, inflation was again low, and real interest rates were lower than in the 1980s.

Realized Real Interest Rates in the United States Were the Highest