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If both the nominal interest rate and the expected inflation rate increase, what will happen to the real interest rate?.
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If both the nominal interest rate and the expected inflation rate increase, what will happen to the real interest rate?.

User Hyzyr
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12 votes

Answer:

If the nominal interest rate and expected inflation rate both increase at the same rate, which means the inflation premium is compensated, the real interest rate will remain unchanged.

Step-by-step explanation:

User Kortney
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