Solved

If Future Price Changes Were Perfectly Anticipated by Both Borrowers

Question 134

Multiple Choice

If future price changes were perfectly anticipated by both borrowers and lenders,what would happen to the real interest rate in the future if the price level changed?


A) it would increase
B) it would decrease
C) it would decrease by the amount of the price increase
D) it would increase by the amount of the price increase
E) it would not change

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions