Question
Inflation reached its peak (of at least 14 percent) in the late 1970s to the early 1980s. If this statement is true, then Group of
Inflation reached its peak (of at least 14 percent) in the late 1970s to the early 1980s. If this statement is true, then
Group of answer choices
it is certain the real rate of interest was greater than the nominal rate.
it is certain the nominal rate of interest was greater than the real rate.
borrowers would borrow more because, automatically, real rates would fall.
the real rate of interest must have been constant, even if the nominal rate varied because of consumption smoothing.
if higher nominal rates were charged, it would be certain that higher real rates would be received.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started