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    Macroeconomics Canada Study Set 2
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    Exam 7: Finance, Saving, and Investment
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    When the Inflation Rate Is Zero, the
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When the Inflation Rate Is Zero, the

Question 73

Question 73

Multiple Choice

When the inflation rate is zero, the


A) real interest rate is negative.
B) nominal interest rate is zero.
C) demand for loanable funds increases.
D) supply of loanable funds decreases.
E) real interest rate equals the nominal interest rate.

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