If the liquidity effect is smaller than the other effects, and the adjustment of expected inflation is slow, then the
A) interest rate will fall.
B) interest rate will rise.
C) interest rate will initially fall but eventually climb above the initial level in response to an increase in money growth.
D) interest rate will initially rise but eventually fall below the initial level in response to an increase in money growth.
C
You might also like to view...
Which of the following is NOT an example of a digital marketing channel?
A) television B) email C) social media D) search engine E) pay per click advertisements
How does the Islamic legal system function?
What will be an ideal response?
In constructing portfolios, investors are advised to consider intangible assets but ignore tangible assets
Indicate whether the statement is true or false.
Industries that have an ETO process supply chain include ______.
a. aerospace and defense b. oil refineries c. computer manufacturing d. commodity production (e.g., salt, sugar)