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Question 7' 1 pts Suppose that people revise their expectations of ination for the next year by 2 percent. For example, they were expecting the

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Question 7' 1 pts Suppose that people revise their expectations of ination for the next year by 2 percent. For example, they were expecting the inflation rate to be 3 percent before. Now they expect it to be 5 percent. According to the Fisher Effect: [There is more than one correct answer to this question]. C C C C Real interest rate will increase by 2%. Real interest rate will decrease by 2%. Real interest rate will not change. Nominal interest rate will increase by 2%. C Nominal interest rate will decrease by 2%. E Nominal interest rate will not change

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