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How does inflation influence the interest rate and the demand for money in the economy? When prices fall, the interest rate is also expected to
How does inflation influence the interest rate and the demand for money in the economy? When prices fall, the interest rate is also expected to fall, and the demand for money decreases. When prices fall, the interest rate is expected to rise, and the demand for money is unaffected. When prices rise, the interest rate is also expected to rise, and the demand for money increases. When prices rise, the interest rate is expected to fall, and the demand for money is unaffected. When prices rise, the interest rate is expected to fall, and the demand for money increases
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