sashamanger3686 sashamanger3686

02-05-2022
Business

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If both the nominal interest rate and the expected inflation rate increase, what will happen to the real interest rate?.

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thatbookishnat thatbookishnat

02-05-2022

Answer:

If the nominal interest rate and expected inflation rate both increase at the same rate, which means the inflation premium is compensated, the real interest rate will remain unchanged.

Explanation:

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