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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 can exceed 100%.
It can be negative.
It cannot be determined.
It can stay the same.
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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 Us
About Fiveable
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Terms of Use
Privacy Policy
CCPA Privacy Policy
Resources
Cram Mode
AP Score Calculators
Study Guides
Practice Quizzes
Glossary
Crisis Text Line
Request a Feature
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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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