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Problem

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question

What is the consequenceof permanent inflation for the What is the consequence interest rates?

category

economics

options

  1. Interest rates decrease to stimulate economic growth
  2. Interest rates become discounted by the anticipated rate of inflation
  3. Inflation has no relation to interest rates
  4. Interest rates fluctuate randomly regardless of inflation
  5. Central banks have less control over interest rates
  6. Interest rates increase dramatically
  7. Interest rates consistently drop below the rate of inflation
  8. The gap between nominal and real interest rates narrows significantly
  9. Interest rates are periodically set to zero to counteract inflation
  10. Interest rates are unaffected by inflation

src

stemez-Economics

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