If nominal interest rates increase:
A. the expected inflation rate must have gone up.
B. either the expected inflation rate went down, the real interest rate went down, or both.
C. either the expected inflation rate went up, the real interest rate went up, or both.
D. the real interest rate must have gone up.
Answer: C
Economics
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a. 4.5 percent b. 8.6 percent c. 9.4 percent d. 15 percent e. 175 percent
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a. True b. False Indicate whether the statement is true or false
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