Nominal interest rate to be equal to the real interest rate

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Reference no: EM13690352

Which of the following must occur for the nominal interest rate to be equal to the real interest rate?

Select one:

a. Expected inflation is equal to the nominal interest rate.

b. The nominal and real interest rates can never be equal.

c. Expected inflation is equal to twice the real interest rate.

d. Expected inflation is equal to the real interest rate.

e. Expected inflation is equal to zero.

Reference no: EM13690352

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