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Researchers Have Suggested That One Way to Avoid Falling into the Liquidity

Question 58

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Researchers have suggested that one way to avoid falling into the liquidity trap is to have higher average inflation. This is because higher average inflation leads to:


A) higher average real interest rates.
B) higher average nominal credit rates.
C) higher average effective interest rates.
D) higher average real credit rates.
E) higher average nominal interest rates.

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