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Everything Else the Same, the Higher the Expected Rate of Inflation

Question 53

Multiple Choice

Everything else the same, the higher the expected rate of inflation, _____. 


A) the lower the loss in purchasing power of investors
B) the higher the required rate of return on an investment
C) the lower the maturity premium required by the investors
D) the higher the money supply in the economy
E) the lower the tax rate in the economy

Correct Answer:

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