Inflation and nominal interest rates haveGroup of answer choicespositive relationinversely relatednegative relationno relation
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Solution 1
Inflation and nominal interest rates have a positive relation. This is because when inflation increases, the purchasing power of money decreases. To compensate for this decrease, lenders will often increase nominal interest rates. This is done to ensure that the real interest rate (the nominal inter Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
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