Multiple Choice
Which of the following decreases the real interest rate?
A) an increase 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) an increase 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
Correct Answer:
Verified
Correct Answer:
Verified
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