If Expected Inflation Is Constant, Then When the Nominal Interest

question 162

Multiple Choice

If expected inflation is constant, then when the nominal interest rate falls, the real interest rate

• A) falls by more than the change in the nominal interest rate.
• B) falls by the change in the nominal interest rate.
• C) rises by the change in the nominal interest rate.
• D) rises by more than the change in the nominal interest rate.

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Definitions:

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