Data on real and nominal interest rates of ten- year Australian T- Bond show that, over the past forty years:
A) the real rate has always been less than the nominal rate.
B) the nominal rate has always been less than the real rate.
C) the nominal rate has varied, but the real rate has not.
D) the real rate has varied, but the nominal rate has not.
E) whenever the nominal rate rises, the real rate falls, and vice versa.
Correct Answer:
Verified
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