Multiple Choice
For a given real interest rate, which statement best describes the effects of an increase in inflation?
A) Inflation makes the real interest rate decrease, which encourages savings.
B) Inflation makes the real interest rate decrease, which discourages savings.
C) Inflation makes the real interest rate increase, which encourages savings.
D) Inflation makes the real interest rate increase, which discourages savings.
Correct Answer:
Verified
Correct Answer:
Verified
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