For a given real interest rate, a decrease in the inflation rate would   a. increase the after-tax real interest rate and so decrease saving.   b. decrease the after-tax real interest rate and so decrease saving.   c. decrease the after-tax real interest rate and so increase saving.   d. increase the after-tax real interest rate and so increase saving.

Question

For a given real interest rate, a decrease in the inflation rate would

 

a.

increase the after-tax real interest rate and so decrease saving.

 

b.

decrease the after-tax real interest rate and so decrease saving.

 

c.

decrease the after-tax real interest rate and so increase saving.

 

d.

increase the after-tax real interest rate and so increase saving.

 

 

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