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36) In 2008, expected inflation exceeded inflation. In 2009, inflation exceeded expected inflation. Therefore the real interest rate was 2008 and the real interest rate was A) less; less B) less; greater C) greater; less D) greater; greater than the expected real interest rate in than the expected real interest rate in 2009.show work

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Answer #1

36. Ans: c ) greater; less

Explanation:

There is an inverse relationship between inflation rate and real interest rate.

The actual real interest will be lower when actual inflation exceeds expected inflation. The actual real interest will be higher when expected inflation exceeds actual inflation.

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