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Which of the following best describes what happens with nominal assets during inflation? a. The real value of the nominal asset will remain the same
Which of the following best describes what happens with nominal assets during inflation?
a. The real value of the nominal asset will remain the same during inflation.
b. The real value of a nominal asset will tend to rise during inflation, sometimes by a rate greater than inflation.
c. The market value of a nominal asset will rise by an amount that is always precisely equal to the rate of inflation.
d. The real value of a nominal asset will fall.
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