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How would these changes to wages and interest rates, influenced by the rate of inflation, impact the GDP? o Multiple answers: Multiple answers are
How would these changes to wages and interest rates, influenced by the rate of inflation, impact the GDP? o Multiple answers: Multiple answers are accepted for this question Select one or more answers and submit. For keyboard navigation... SHOW MORE a b d The change in wages leads to higher consumption. This would increase the nominal GDP if all else remained equal. The change in nominal GDP would be dependant on how large an effect the change in both wages and interest rates have. The change in wages due to inflation would have a larger effect on real GDP. Real GDP would increase. The change in interest rates discourages consumption. This would decrease real GDP if all else remained equal. The change in interest rates would encourage more saving. This would increase investment spending and increase the real GDP. This would have a larger impact than any other factor.
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