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If You Anticipate That the Inflation Rate Is Going to Rise

Question 361

Multiple Choice

If you anticipate that the inflation rate is going to rise from three percent to 10 percent next year, you should


A) save your funds at a fixed rate of interest.
B) borrow funds at a fixed rate of interest.
C) keep your funds in your sock drawer.
D) wait to buy a house until next year.

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