2) The nominal interest rate is equal to the real interest rate if A) Expected inflation is greater than the nominal interest rate. B) Expected inflation is less than the real interest rate. C) Expected inflation is positive. D) Expected inflation equals to zero. E) none of the above

2) The nominal interest rate is equal to the real interest rate if A) Expected inflation is greater than the nominal interest rate. B) Expected inflation is less than the real interest rate. C) Expected inflation is positive. D) Expected inflation equals to zero. E) none of the above

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter13: Inflation

Section: Chapter Questions

Problem 10SQ

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Question

2) The nominal interest rate is equal to the real interest rate if
A) Expected inflation is greater than the nominal interest rate.
B) Expected inflation is less than the real interest rate.
C) Expected inflation is positive.
D) Expected inflation equals to zero.
E) none of the above

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