Which of the following is the most accurate statement about real and nominal interest rates?
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 negative if inflation exceeds nominal interest rates, while nominal rates are typically positive but can be zero or negative in rare cases.

Which of the Following Is the Most Accurate Statement About