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Which of the Following Statements Is Correct

Question 220

Multiple Choice

Which of the following statements is correct?


A) For a given real interest rate, the nominal interest must decrease if expected inflation increases.
B) For a given nominal interest rate, the real interest will decrease if inflation decreases.
C) For a given expected inflation rate, the nominal interest must increase if real interest decreases.
D) For a given real interest rate, the nominal interest must increase if expected inflation increases.

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