Main menu For students For teachers Explore our subjects Student events & courses

Explore

More for students
Sign in

Free Economics resources

Topic Videos

Negative Interest Rates Short Answers

Level:
A-Level, BTEC National, IB Diploma
Board:
AQA, Edexcel, Eduqas, IB, OCR, WJEC

Last updated 9 Oct 2019

Share this content:

In some Euro Zone countries, both the nominal and real interest rate has become negative. Using a numerical example, distinguish between nominal and real interest rates.Explain how negative interest rates might impact on two macroeconomic objectives. Here is a short video providing an answer to this question.

Share this content:

You might also like

In the News Teaching Activity – What is likely to happen to UK inflation over the next year? (July 2026)

2nd July 2026

In the News Teaching Activity – What is happening to consumer confidence in the UK? (May 2026)

21st May 2026

In the News Teaching Activity – What is the state of the UK’s economy? (Apr 2026)

30th April 2026

Master These Monetary Policy Stats Before Your 2026 A-Level Economics Exams

20th April 2026

Macro Case Study: ECB and Eurozone stability

Topical case studies

Macro Case Study: Japan's exchange rate

Topical case studies

In the News Teaching Activity – Could the UK economy tip into recession? (Mar 2026)

23rd March 2026

Bank of England Cuts Rates to 3.75% — Explained

18th December 2025