Author Question: Given that real interest rates are constant, an increase in the expected rate of inflation will tend ... (Read 107 times)

09madisonrousseau09 · **on:** Jun 30, 2018

Given that real interest rates are constant, an increase in the expected rate of inflation will tend to

A) decrease the nominal rate of interest.
B) increase the nominal rate of interest.
C) cause lower inflation rates.
D) cause no change in the nominal rate of interest.

Question 2

A policy of beggar-thy-neighbor is a policy that

A) often benefits the home country in the long run.
B) often benefits the foreign country in the long run.
C) often benefits foreign country in the short run.
D) does not often benefits any country in the long run.
E) benefits the home country's neighbors in the long run.