Joyce's investments earn 5% nominal annual return right now while the inflation rate is at 1%. If inflation increases to 5%, it is likely that the nominal rate will _____. A. stay the same B. decrease

Joyce's investments earn 5% nominal annual return right now while the inflation rate is at 1%. If inflation increases to 5%, it is likely that the nominal rate will _____.

A.

stay the same

B.

decrease

C.

increase

D.

approach the real rate

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