Which of the following statements regarding the relationship between economic factors and the nominal inflation rate is true?
Which of the following statements regarding the relationship between economic factors and the nominal inflation rate is true?
Question 2 options:
All of these answers.
For every 1% increase in inflation, the nominal interest rate should be raised by more than 1%.
If there is an inflationary gap, there will be a corresponding reduction in interest rates.
If the inflationary expectation goes up, the market interest rate decreases
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