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Which of the Following Statements Is True

Question 56

Multiple Choice

Which of the following statements is true?


A) An increase in the real interest rate might discourage savings.
B) An increase in the real interest rate always encourages higher savings.
C) In an economy with a positive inflation rate, the real wage rate is always greater than the nominal wage rate.
D) An increase in the nominal wage rate leads to a decrease in the real wage rate if the price level is stable.

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