A decrease in the inflation rate will lead to a ________ nominal interest rate, which will ________ the debt-to-GDP ratio

A) higher; raise
B) higher; reduce
C) lower; raise
D) lower; reduce

D

Economics

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Changes in interest rates affect all four components of aggregate demand

Indicate whether the statement is true or false

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Assuming Cournot behavior, what happens to the market output, the price of the output, and each firm's output as the number of firms in a market increases?

What will be an ideal response?

Economics