Which of the following statements is true? A) An increase in the nomi

Which of the following statements is true?

A) An increase in the nominal wage rate leads to a decrease in the real wage rate if the price level is stable.
B) In an economy which has a positive inflation rate, the real wage rate is always greater than the nominal wage rate.
C) An increase in the real interest rate always encourages higher savings.
D) An increase in the real interest rate might discourage savings.

ANSWER

D