During the 20072009 crises, nominal interest rates fell to nearly 0%, while the rate of inflation remained
Question:
a. What happened to the real interest rate?
b. How would this affect savers and borrowers?
c. If nominal interest rates were negative, what would happen if you put money in a savings account in the bank?
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Step by Step Answer:
a The real interest rate became negative b Savers los...View the full answer
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Related Book For 
Macroeconomics
ISBN: 9780132109994
1st Edition
Authors: Glenn Hubbard, Anthony Patrick O'Brien, Matthew P Rafferty
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