Question: Help Save & Exit Submit If inflation does not adjust rapidly in the short run, then when the Federal Reserve increases the nominal interest rate,

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If inflation does not adjust rapidly in the short run, then when the Federal Reserve increases the nominal interest rate, the real interest rate in the short run will

Multiple Choice

8

30

not change.

be determined by saving and investment decisions.

increase.

decrease.

Help Save & Exit Submit If inflation does not

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