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    Macroeconomics Study Set 43
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    Exam 9: B: Business Cycles, Unemployment, and Inflation
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    If Both the Real Interest Rate and the Nominal Interest
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If Both the Real Interest Rate and the Nominal Interest

Question 116

Question 116

Multiple Choice

If both the real interest rate and the nominal interest rate are 3 percent, then the:


A) inflation premium is zero.
B) real GDP must exceed the nominal GDP.
C) nominal GDP must exceed real GDP.
D) inflation premium also is 3 percent.

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