Why do nominal interest rates rise approximately 1-for-1 with increases in inflation?

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Microeconomics and Behavior

ISBN: 978-0078021695

9th edition

Authors: Robert Frank

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Question Posted: Dec 12, 2014 10:24 AM

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Why do nominal interest rates rise approximately 1-for-1 with increases in inflation?

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Lenders and borrowers are concerned with real rates not nomi...View the full answer

Microeconomics and Behavior

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