lectur4-page16 - compensate lenders for the increased loss...

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When inflation decreases, risk-free interest rates decrease, and nominal interest rates decrease as well. When inflation increases, interest rates will increase as well to
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Unformatted text preview: compensate lenders for the increased loss in future purchasing power. 16...
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This note was uploaded on 12/29/2011 for the course ECO 210 taught by Professor Malls during the Fall '10 term at SUNY Stony Brook.

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