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An analyst argues that nominal interest rates must rise one-for-one with a fully-anticipated rise in the expected inflation rate. This is: a. Not true any
An analyst argues that nominal interest rates must rise one-for-one with a fully-anticipated rise in the expected inflation rate. This is: a. Not true any nominal interest rate is consistent with a variety of inflation rates. b. True it is a reasonable approximation for low inflation rates. c. True but only for high inflation rates. d. False inflation can easily wipe out interest earnings.
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