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Data on Real and Nominal Interest Rates of One-Year U

Question 10

Multiple Choice

Data on real and nominal interest rates of one-year U.S.T-Bills show that,over the past twenty years,


A) the nominal rate has always been less than the real rate.
B) whenever the nominal rate rises, the real rate falls, and vice versa.
C) the nominal rate has varied, but the real rate has not.
D) the real rate has varied, but the nominal rate has not.
E) the real rate has always been less than the nominal rate.

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