An Increase in the Real Interest Rate Would Cause an Increase

question 38

Multiple Choice

An increase in the real interest rate would cause an increase in the real demand for money

• A)no matter what the change in expected inflation.
• B)if expected inflation fell by less than the rise in the real interest rate.
• C)if expected inflation fell by the same amount as the rise in the real interest rate.
• D)if expected inflation fell by more than the rise in the real interest rate.