g If the inflation rate is larger than the nominal interest rate: Group of answer choices the real interest rate is negative the

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g If the inflation rate is larger than the nominal interest rate: Group of answer choices the real interest rate is negative the

real interest rate is larger than the nominal interest rate. the real interest rate is zero. Not enough information is given. unemployment rises.

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1 answer:

Doss [256] · Answer 1 · 2022-01-04T06:42:45+03:00

Answer: the real interest rate is negative

Explanation:

The real interest rate is the rate of interest that is received or expected to be received by a lender, saver or an investor after due to inflation. Real interest rate is gotten when the inflation rate is deducted from the nominal interest rate.

A negative real interest rate simply implies that means that inflation rate is more than nominal interest rate.