A.a rise in a country’s expected inflation rate will eventually cause a more-than proportional rise in the interest rate that depositors of its currency offer in order to accommodate for the higher
B.a fall in a country’s expected inflation rate will eventually cause an equal rise in the interest rate that depositors of its currency
C.a rise in a country’s expected inflation rate will eventually cause an equal rise in the interest rate that depositors of its currency
D.a rise in a country’s expected inflation rate will eventually cause a less than proportional rise in the interest rate that depositors of its currency offer to accommodate the rise in expected
E.None of the above statements is true.
Answer: C
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