Last year, the nominal interest rate was less than the anticipated rate of inflation.

Name: Last year, the nominal interest rate was less than the anticipated rate of inflation.
Brand: Quizplus
Rating: 4.9 (43 reviews)

Question

Quizplus · Accepted Answer

A nominal interest rate less than the anticipated rate of inflation indicates that the real interest rate (nominal rate - inflation rate) is negative, meaning that the borrower is actually losing money due to inflation. This can discourage borrowing and increase saving, which can have an impact on the economy.

Last Year, the Nominal Interest Rate Was Less Than the Anticipated