Which of the following statements about real and nominal interest rates is correct?
A)Real interest rates can be either positive or negative,but nominal interest rates must be positive.
B)Real interest rates and nominal interest rates must be positive.
C)Real interest rates must be positive,but nominal interest rates can be either positive or negative.
D)Real interest rates and nominal interest rates can be either positive or negative.

Question

Quizplus · Accepted Answer

Real interest rates can be either positive or negative, but nominal interest rates must be positive because they are the sum of the real interest rate and the inflation rate.

Which of the Following Statements About Real and Nominal Interest