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    Other Things Constant, an Increase in the Expected Inflation Rate
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Other Things Constant, an Increase in the Expected Inflation Rate

Question 107

Question 107

Multiple Choice

Other things constant, an increase in the expected inflation rate will


A) decrease the inflationary premium.
B) increase money (nominal) interest rates.
C) increase the supply of loanable funds.
D) decrease the money interest rate.

Correct Answer:

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