question archive 1)What effect does inflation have on interest rates and why? 2)Let the MPC = 0

1)What effect does inflation have on interest rates and why? 2)Let the MPC = 0

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1)What effect does inflation have on interest rates and why?

2)Let the MPC = 0.5 in an economy. These households are:

A) saving a relatively low amount

B) saving a relatively high amount

C) importing a lot of goods

D) overly taxed

Option 1

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