The following table shows the nominal interest rate and the annual inflation rate (the GDP deflator) of Japan in the period 1996-2015 (Source World Bank) 1996-2000 2001-2005 2006-2010 2011-2015 Interest rate 1.5% 1.4% 1.3% 1.2% Inflation rate -1.9% -0.9% -0.5% 1.6% Based on this information, which of the following statement is correct? The real interest rate in 1996-2000 period is higher than the real interest rate in 2011-2015 period O The real interest rate in 1996-2000 was -0.4% O Japan's real interest rate has been rising consistently over this penod The real interest rate in 1996-2000 period is the same as the real interest rate in 2011-2015 period

Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter7: Unemployment And Inflation
Section: Chapter Questions
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M1
The following table shows the nominal interest rate and the annual inflation rate (the GDP deflator) of Japan in the period 1990-2015 (Source World Bank)
1996-2000
2001-2005 2006-2010
2011-2015
Interest rate
1.5%
1.4%
1.3%
1.2%
Inflation rate
-1.9%
-0.9%
-0.5%
1.6%
Based on this information, which of the following statement is correct?
O The real interest rate in 1996-2000 period is higher than the real interest rate in 2011-2015 period
O The real interest rate in 1996-2000 was -0.4%
O Japan's real interest rate has been rising consistently over this period
O The real interest rate in 1996-2000 period is the same as the real interest rate in 2011-2015 period
Transcribed Image Text:The following table shows the nominal interest rate and the annual inflation rate (the GDP deflator) of Japan in the period 1990-2015 (Source World Bank) 1996-2000 2001-2005 2006-2010 2011-2015 Interest rate 1.5% 1.4% 1.3% 1.2% Inflation rate -1.9% -0.9% -0.5% 1.6% Based on this information, which of the following statement is correct? O The real interest rate in 1996-2000 period is higher than the real interest rate in 2011-2015 period O The real interest rate in 1996-2000 was -0.4% O Japan's real interest rate has been rising consistently over this period O The real interest rate in 1996-2000 period is the same as the real interest rate in 2011-2015 period
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