During periods of deflation, the nominal interest rate will be a. higher than the real interest rate. b. lower than the real interest rate. O c. the same as the real interest rate. O d. possibly higher, lower, or the same as the real interest rate. The answer depends on how much deflation there is in the economy.
During periods of deflation, the nominal interest rate will be a. higher than the real interest rate. b. lower than the real interest rate. O c. the same as the real interest rate. O d. possibly higher, lower, or the same as the real interest rate. The answer depends on how much deflation there is in the economy.
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter29: Interest, Rent, And Profit
Section: Chapter Questions
Problem 5QP
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