If the nominal interest rate is greater than the real interest rate,
A) it is an indication of economic growth.
B) inflation must be occurring.
C) lenders must lose because they can only make loans using the real interest rate.
D) the real interest rate must be negative.
E) None of the above answers is correct because it is not possible for the nominal interest rate to exceed the real interest rate.
Correct Answer:
Verified
Q201: The CPI was 225 in 2008 and
Q202: Citicorp charges an 11 percent interest rate
Q203: The real interest rate is negative if
Q204: Which of the following is true?
A)The real
Q205: Q207: If the CPI is 170 at the Q208: To convert the nominal interest rate to Q209: If the bank returns $1,060 on the Q210: If the real interest rate is 7 Q211: ![]()
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