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:

Bits

The smallest units of data in computer processing, each of which can hold a value of either 0 or 1.

Sequential Function Chart

A graphical programming language used for programmable logic controllers (PLCs) to describe the sequence of operations in an industrial process.

Function Block

Rectangular block with inputs entering from the left and outputs exiting on the right.