The impact of higher rates of inflation in

问题单项选择题

The impact of higher rates of inflation in the long run on real interest rates and on nominal interest rates is:Real rats Nominal rates（）①A. Increase Increase ②B. Increase No change ③C. No change Increase

A. ①

B. ②

C. ③

答案

参考答案：C

解析：

The nominal rate is approximately equal to the real rate plus a premium for expected inflation. An increase in inflation increases the inflation premium, and the nominal rate as a result, but not the real rate of interest.