Figure 4.1 -In Figure 4.1, the Most Likely Cause of a Decrease

question 88

Multiple Choice

Figure 4.1
-In Figure 4.1, the most likely cause of a decrease in the equilibrium interest rate from i₂ to i₁ is

• A)an increase in the expected inflation rate.
• B)a decrease in the expected inflation rate.
• C)a business cycle expansion.
• D)a combination of both A and C of the above.

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