All other factors equal, as nominal interest rates increase, checking account balances should:

Name: All other factors equal, as nominal interest rates increase, checking account balances should:
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Question

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As nominal interest rates increase, individuals tend to save more money in interest-bearing accounts, such as savings accounts or certificates of deposit, which offer higher interest rates than non-interest bearing checking accounts. As a result, checking account balances decrease.

All Other Factors Equal, as Nominal Interest Rates Increase, Checking