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The Real Interest Rate ________ Inflation ________

Question 78

Multiple Choice

The real interest rate ________ inflation ________.


A) subtracted from the nominal rate yields expected;according to the Fisher equation
B) moves one for one,in the long run,with expected;according to the classical dichotomy
C) always increases with;but because of the Fisher effect lower expected inflation ensues
D) all of the above
E) none of the above

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