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If inflation If inflation is expected to rise over the next year, what is the likely impact on short- term interest rates? O a) Real

If inflation

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If inflation is expected to rise over the next year, what is the likely impact on short- term interest rates? O a) Real interest rates will fall. Jim O b) Nominal interest rates will fall because demand conditions will likely worsen. O c) Real interest rates will rise. O d) Nominal interest rates will rise to reflect expansionary pressures in the economy. Previous Page Next Page Page 5 of 9

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