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  3. Study Set
    Modern Principles of Economics
  4. Exam
    Exam 12: Inflation and the Quantity Theory of Money
  5. Question
    For a Given Nominal Interest Rate, an Increase in Deflation
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For a Given Nominal Interest Rate, an Increase in Deflation

Question 137

Question 137

Multiple Choice

For a given nominal interest rate, an increase in deflation will cause the real rate of interest to:


A) remain relatively constant.
B) increase.
C) decrease.
D) become unpredictable.

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