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Which of the Following Increases the Real Interest Rate

Question 261

Multiple Choice

Which of the following increases the real interest rate?


A) a decrease in the nominal interest rate, holding the inflation rate constant
B) an increase in both the nominal interest rate and the inflation rate by the same percentage points
C) a decrease in the inflation rate, holding the nominal interest rate constant
D) a decrease in both the nominal interest rate and the inflation rate by the same percentage points

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