If the nominal interest rates rises, then the inflation rate must have increased.

Name: If the nominal interest rates rises, then the inflation rate must have increased.
Brand: Quizplus
Rating: 4.8 (24 reviews)

Question

Quizplus · Accepted Answer

Nominal interest rates can rise for various reasons, not just because of an increase in inflation. They can also increase due to changes in monetary policy, expectations of future inflation, or changes in the demand for or supply of loanable funds.

If the Nominal Interest Rates Rises, Then the Inflation Rate