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When Inflation Increases Over the Long Run (Several Years)

Question 64

Multiple Choice

When inflation increases over the long run (several years) ,


A) consumption will increase at a faster rate in real dollars.
B) interest rates will move up with inflation.
C) real GDP growth will stabilize at the rate of inflation plus 3% real growth.
D) the dollar will usually rise relative to currencies of countries where inflation is growing at a slower rate.

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