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Which of the following factors would be most likely to lead to an increase in nominal interest rates? A. Households reduce their consumption and increase
Which of the following factors would be most likely to lead to an increase in nominal interest rates?
- A. Households reduce their consumption and increase their savings.
- B. A new technology has just been introduced, and it increases investment opportunities for firms.
- C. There is an increase in expected inflation.
- D. Statements b and c are correct.
- E. All of the statements above are correct.
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