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Suppose the nominal interest rate for both 2020 and 2021 is zero and.pdf

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Suppose the nominal interest rate for both 2020 and 2021 is zero and a country has a larger increase in debt in 2021 than it had in 2020. Then, other things the same, in equilibrium in 2021: a. Investment and the real interest rate fall. b. Investment falls and the real interest rate rises. c. Investment increases and the real interest rate falls. d. Investment and the real interest rate rise.

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Suppose the nominal interest rate for both 2020 and 2021 is zero and a country has a larger increase in debt in 2021 than it had in 2020. Then, other things the same, in equilibrium in 2021: a. Investment and the real interest rate fall. b. Investment falls and the real interest rate rises. c. Investment increases and the real interest rate falls. d. Investment and the real interest rate rise

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  • 1. Suppose the nominal interest rate for both 2020 and 2021 is zero and a country has a larger increase in debt in 2021 than it had in 2020. Then, other things the same, in equilibrium in 2021: a. Investment and the real interest rate fall. b. Investment falls and the real interest rate rises. c. Investment increases and the real interest rate falls. d. Investment and the real interest rate rise