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If Expected Inflation Is Constant, Then When the Nominal Interest

Question 162

Multiple Choice

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


A) falls by more than the change in the nominal interest rate.
B) falls by the change in the nominal interest rate.
C) rises by the change in the nominal interest rate.
D) rises by more than the change in the nominal interest rate.

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