In the United States in the late 1970s,nominal interest rates were high and inflation rates were very high.As a result,real interest rates were

Question

Quizplus · Accepted Answer

Real interest rates are calculated by subtracting the inflation rate from the nominal interest rate. In the late 1970s, nominal interest rates were high due to tight monetary policy, but inflation rates were even higher, resulting in negative real interest rates in many years. Therefore, the best answer is D, as real interest rates were low and even negative in some years.

In the United States in the Late 1970s,nominal Interest Rates