One of the characteristics of financial repression is
A)negative real interest rates.
B)lack of credit rationing.
C)capital flowing to the highest rate of return.
D)all of the above.
E)none of the above.

Question

Quizplus · Accepted Answer

Negative real interest rates, which means interest rates are below inflation rates, is a key characteristic of financial repression. This is done to discourage savings and encourage spending, which can help reduce government debt. Credit rationing and capital flowing to the highest rate of return are not characteristics of financial repression, but rather the opposite.

One of the Characteristics of Financial Repression Is