Explanation

Option A is correct: Faster potential GDP growth typically leads to higher real interest rates.

Economic rationale:

• Higher potential growth increases the marginal product of capital
• This raises the equilibrium real interest rate (the natural rate of interest)
• Central banks may need to set higher policy rates to prevent overheating

Why other options are incorrect:

• Option B: Actual GDP growth above potential puts upward pressure on inflation (not downward) due to demand exceeding supply capacity
• Option C: Lower potential GDP growth generally worsens credit quality as it indicates weaker economic fundamentals and repayment capacity

Key concept: Potential GDP represents the economy's sustainable growth capacity without generating inflation.