Interest rate Inflation rate 1996-2000 2001-2005 1.5% 1.4% -1.9% -0.9% 2006-2010 1.3% -0.5% 2011-2015 1.2% 1.6% The table shows the nominal interest rate and the annual inflation rate (the GDP deflator) of Japan in the period 1996-2015 (Source: World Bank). Based on this information, which of the following statements are correct? The real interest rate in 1996-2000 was -0.4%. Japan's real interest rate has been rising consistently over this period. Japan's real interest rate turned from being positive to negative during the period. The real interest rate has been falling faster than the nominal interest rate.

Interest rate Inflation rate 1996-2000 2001-2005 1.5% 1.4% -1.9% -0.9% 2006-2010 1.3% -0.5% 2011-2015 1.2% 1.6% The table shows the nominal interest rate and the annual inflation rate (the GDP deflator) of Japan in the period 1996-2015 (Source: World Bank). Based on this information, which of the following statements are correct? The real interest rate in 1996-2000 was -0.4%. Japan's real interest rate has been rising consistently over this period. Japan's real interest rate turned from being positive to negative during the period. The real interest rate has been falling faster than the nominal interest rate.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Unemployment And Inflation

Section: Chapter Questions

Problem 3.7P

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