An Increase in Expected Inflation Causes the Real Interest Rate

question 57

Multiple Choice

An increase in expected inflation causes the real interest rate to ________ and output to ________ in the short run,before prices adjust to restore equilibrium.

• A)rise; rise
• B)rise; fall
• C)fall; rise
• D)fall; fall

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Definitions:

Client Behavior

Actions, reactions, or mannerisms displayed by a client, which are often the focus of assessment and intervention in therapy.

Universality

The quality of being universal; applicable or significant in all cases, or in certain contexts, the feeling of being part of a larger human experience.

Closed Questions

Questions typically answered with a simple "yes" or "no," limiting the extent of the response.

Helping Process

A series of steps taken by a counselor or therapist to provide assistance or guidance to a client.