Which of the following statements is false?
A)Nominal interest rate can be either positive,zero,or negative.
B)The expected real interest rate can be either positive,zero,or negative.
C)The expected real interest rate is the correct interest rate to use for studying people's decisions about how much to borrow or lend.
D)Nominal interest rate must exceed the expected real interest rate as long as there is a positive expected inflation rate.

Question

Quizplus · Accepted Answer

Nominal interest rates are typically positive or zero, but they are not usually negative. Negative nominal interest rates are rare and occur under specific economic conditions.

Which of the Following Statements Is False