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In 2008,expected Inflation Exceeded Inflation

Question 46

Multiple Choice

In 2008,expected inflation exceeded inflation.In 2009,inflation exceeded expected inflation.Therefore the real interest rate was ________ than the expected real interest rate in 2008 and the real interest rate was ________ than the expected real interest rate in 2009.


A) less; less
B) less; greater
C) greater; less
D) greater; greater

Correct Answer:

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