Which of the Following Statements Is True

question 101

Multiple Choice

Which of the following statements is true ?

• A)Demand-pull inflation is caused by excess total spending.
• B)Cost-push inflation is caused by an increase in resource costs.
• C)If nominal interest rates remain the same and the inflation rate falls, real interest rates increase.
• D)If real interest rates are negative, lenders incur losses.
• E)All of these.

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