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For a Given Real Interest Rate,a Decrease in the Inflation

Question 57

Multiple Choice

For a given real interest rate,a decrease in the inflation rate would


A) decrease the after-tax real interest rate and so decrease saving.
B) decrease the after-tax real interest rate and so increase saving.
C) increase the after-tax real interest rate and so decrease saving.
D) increase the after-tax real interest rate and so increase saving.

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