Multiple Choice
If expected inflation is constant and the nominal interest rate decreases by 2 percentage points,then the real interest rate
A) increases by 2 percentage points.
B) increases,but by less than 2 percentage points.
C) decreases,but by less than 2 percentage points.
D) decreases by 2 percentage points.
Correct Answer:
Verified
Correct Answer:
Verified
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