If the ex- ante real interest rate is less than the ex post real interest rate, which

Question:

If the ex- ante real interest rate is less than the ex post real interest rate, which of the following happened?

a. Actual inflation rate is less than the expected inflation rate

b. Actual inflation rate is greater than the expected inflation rate

c. Actual inflation rate is equal to the expected inflation rate

d. The expected inflation rate was zero.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Question Posted: