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If Expected Inflation Is Constant, Then When the Nominal Interest

Question 198

Multiple Choice

If expected inflation is constant, then when the nominal interest rate increases, the real interest rate


A) increases by more than the change in the nominal interest rate.
B) increases by the change in the nominal interest rate.
C) decreases by the change in the nominal interest rate.
D) decreases by more than the change in the nominal interest rate.

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