If the Real Interest Rate Is Expected to Become Negative

question 20

Multiple Choice

If the real interest rate is expected to become negative, then the purchasing power of savings would be ____, as the inflation rate is expected to be ____ the existing nominal interest rate. ​

• A)decreasing; less than
• B)decreasing; greater than
• C)increasing; greater than
• D)increasing; less than

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Definitions:

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