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Negative Interest Rates Short Answers

AS, A-Level, IB, BTEC National
AQA, Edexcel, OCR, IB, Eduqas, WJEC

Last updated 9 Oct 2019

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.

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