What would happen to the real interest rate

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If expected inflation is constant and the nominal interest rate increased 5 percentage points, what would happen to the real interest rate?

a. It would increase 5 percentage points.

b. It would increase, but by fewer than 5 percentage points.

c. It would decrease, but by fewer than 5 percentage points.

d. It would decrease by 5 percentage points

Reference no: EM13743933

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