Discuss long-run real interest rates expected to increase


Assignment Problem: Long-run real interest rates are expected to increase. An accountant and an MBA student (who just finished his course of Managerial Economics) were interviewed regarding the effect of this increase. Keeping all else constant, their answer would likely differ. How do you guess the interviewed will answer? Does the difference in response matters? If yes, why? If not, why not?

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Microeconomics: Discuss long-run real interest rates expected to increase
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