What would a negative real interest rate mean


Question 1. What effect would a period of rapid inflation likely have on the role of money as a store of value, and on people's attitudes toward money generally? Why?

Question 2. in 1973-75, real interest rates were actually negative.

(a) what would a negative real interest rate mean?

(b) what could explain such an unusual development?

Solution Preview :

Prepared by a verified Expert
Macroeconomics: What would a negative real interest rate mean
Reference No:- TGS02091564

Now Priced at $20 (50% Discount)

Recommended (92%)

Rated (4.4/5)