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.

---

Definitions:

Interpersonal Communication

The exchange of information, feelings, and meanings between two or more people through verbal and/or non-verbal methods.

Originates

To begin, arise, or have its starting point.

Sender

The person who initiates a message.

Asynchronous Communication

Communication where response does not occur in real-time, allowing delays between messages being sent and received.