During years of financial repression in LDCs, the rea interest rate was often negative due to:

Question

a. explicit policy by the government b. ow nterest rates instituted by government to encourage capital
nvestment c government policy to combat infation d. an inadvertent result of infation occurrng after
nominal interest rates had been fixed.

Answer 1

d. an inadvertent result of inflation occurring after nominal interest rates had been fixed.