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AP Macroeconomics
Unit 4 – Financial Sector
Topic 4.2
If the inflation rate is higher than the nominal interest rate, what can happen to the real interest rate?
It cannot be determined.
It can exceed 100%.
It can stay the same.
It can be negative.
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AP Macroeconomics - 4.2 Nominal vs. Real Interest Rates
Key terms
Inflation Rate
Nominal Interest Rate
Real Interest Rate
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About Fiveable
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Terms of Use
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CCPA Privacy Policy
Resources
Cram Mode
AP Score Calculators
Study Guides
Practice Quizzes
Glossary
Crisis Text Line
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© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
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