ambedkar doubt

[simar vijay singh]

can someone help me wid this ques
can we have negative nominal interest rates in equilbrium?

[xyz123]

No we cannot have negative nominal interest rate. This would mean than a deposit in bank instead of paying you the interest rate, will ask you for the interest rate amount. Which can't happen.

But you can have real interest as negative. Nominal = Real +Inflation

[Nupur]

The answer is (c) or (e)??

[Anjali]

I think C

[bhavya jain]

shouldn't it be d)

[simar vijay singh]

should be c ...

[xyz123]

Can you explain why its c)?
Thanks

[Anjali]

Hi !
See when we talk about perfect correlation , either negative or positive , its 1 or -1.
In this case both values are tending to 0 - negligible correlation . But in absolute value , 0.3 >0.2 , so it should be option C .

[xyz123]

Oh yaa, thanks