Question: Why can a countrys nominal interest rate never be negative? Why can a countrys real interest rate indeed be negative? If a country has a
Why can a country’s nominal interest rate never be negative? Why can a country’s real interest rate indeed be negative? If a country has a negative real rate, do you think that this suggests that the country is not well integrated into world financial markets? Explain.
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The nominal rate of interest can never be negative because that would indicate that people were will... View full answer
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