Which of the following factors would be most likely to lead to an increase in nominal interest rates?

A. Households reduce their consumption and increase their savings.
B. A new technology like the Internet has just been introduced, and it increases investment opportunities.
C. There is a decrease in expected inflation.
D. The economy falls into a recession.
E. The Federal Reserve decides to try to stimulate the economy.


Answer: B

Business

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What will be an ideal response?

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