Business, 19.09.2019 18:30 mallardmya2006

Suppose that the nominal interest rate is 6% and the expected inflation rate is 2%. if banks and the public expect the inflation rate to increase to 4% a banks will keep their nominal interest rates at 6% b banks will increase their nominal interest rates c banks will lend more money to borrowers d the real interest rate should increase also

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Suppose that the nominal interest rate is 6% and the expected inflation rate is 2%. if banks and the...