8 Recall the formula used to calculate the real value of an interest rate. If the nominal interest rate is constant in value and the general price level increases over time, what will happen to the value of the real interest rate? O It will stay constant. OIt will increase. OIt be equal to 1. O It will decrease.

8 Recall the formula used to calculate the real value of an interest rate. If the nominal interest rate is constant in value and the general price level increases over time, what will happen to the value of the real interest rate? O It will stay constant. OIt will increase. OIt be equal to 1. O It will decrease.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter17: Capital And Time

Section: Chapter Questions

Problem 17.2P

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