For a Given Real Interest Rate,a Decrease in the Inflation

question 57

Multiple Choice

For a given real interest rate,a decrease in the inflation rate would

• A)decrease the after-tax real interest rate and so decrease saving.
• B)decrease the after-tax real interest rate and so increase saving.
• C)increase the after-tax real interest rate and so decrease saving.
• D)increase the after-tax real interest rate and so increase saving.

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Definitions:

Sales Promotions

Short-term incentives or activities designed to boost sales or consumption of products or services.

Premiums

High-quality products or services often sold at a higher price due to their perceived extra value.

Deals

Special offers, discounts, or promotions designed to encourage consumers to purchase a product or service at a reduced price.

Sales Promotion

A marketing strategy involving the use of short-term incentives to encourage the purchase or sale of a product or service.