Question: Why would a higher inflation target result in a higher average level of interest rates? Group of answer choices A)Higher inflation, once experienced, leads banks

Why would a higher inflation target result in a higher average level of interest rates? Group of answer choices A)Higher inflation, once experienced, leads banks to increase interest rates. B)Higher inflation, once experienced, increases nominal interest rates. C)Higher inflation, once expected, leads the Fed to increase the Feds funds rate. D)Higher inflation, once expected, increase nominal interest rates.

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