In comparison to the situation in the late 1970s, the United States experienced lower nominal interest rates and higher real interest rates in the late 1990s.

Question

Quizplus · Accepted Answer

In the late 1990s, the United States indeed experienced lower nominal interest rates compared to the late 1970s due to a more stable inflation environment. Real interest rates were higher because inflation was lower, increasing the purchasing power of the interest earned.

In Comparison to the Situation in the Late 1970s, the United