What effect would each of the following events likely have on the level of nominal interest rates?
1. Households dramatically increase there savings rate.
2. corporations increase their demand for funds following an increase in investment opportunities.
3. the government runs a larger-than-expected budget deficit.
4. There is an increase in expected inflation.

Question

04-06-2024
Business

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What effect would each of the following events likely have on the level of nominal interest rates?
1. Households dramatically increase there savings rate.
2. corporations increase their demand for funds following an increase in investment opportunities.
3. the government runs a larger-than-expected budget deficit.
4. There is an increase in expected inflation.

Sagot :

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