If the nominal interest rate is held constant, a higher inflation rate tends to
A) reduce the real interest rate.
B) increase the real interest rate.
C) leave the real interest rate unchanged.
D) have no effect on the savings decisions of households.
A
Economics
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During a recession, people drop out of the labor force because they are unable to find a job. All else the same, this
A) increases the official U-3 unemployment rate. B) decreases the official U-3 unemployment rate. C) does not change the official U-3 unemployment rate. D) increases the official U-3 unemployment rate and the labor force participation rate.
Economics
The endogenous variable in the liquidity preference function is ________
A) demand for real money balances B) the nominal interest rate C) real income D) the price level E) none of the above
Economics