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a. employers to employees b. the government to taxpayers c. borrowers to lenders d. lenders to borrowers 7. If inflation rises from 5% to

a. employers to employees b. the government to taxpayers c. borrowers to lenders d. lenders to borrowers 7. If inflation rises from 5% to 10% (5 percentage points), then nominal interest rates a. decrease by 5 percentage points b. increase by 5 percentage points c. does not change d. increase by 10 percentage points

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