The expected real interest rate is equal to

A) the nominal interest rate minus the expected rate of inflation.
B) the nominal interest rate plus the expected rate of inflation.
C) the nominal interest rate minus the actual rate of inflation.
D) the nominal interest rate plus the actual rate of inflation.

A

Economics

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Which group believes the government should react to inflation by tightening the money supply?

A. Monetarists and modern Keynesians. B. Supply-siders and monetarists. C. New classical economists and monetarists. D. Modern Keynesians and supply-siders.

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