High inflation rates are usually associated with:
A) low nominal interest rates.
B) high nominal interest rates.
C) high real interest rates.
D) low real interest rates.

Name: High inflation rates are usually associated with: A) low nominal interest rates. B) high nominal interest rates. C) high real interest rates. D) low real interest rates.
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Question

Quizplus · Accepted Answer

High inflation rates typically lead to high nominal interest rates as lenders demand higher returns to compensate for the decreased purchasing power of money.

High Inflation Rates Are Usually Associated With