If the inflation rate falls and nominal interest rates are unchanged,
A) inflation will fall.
B) inflation will continue at the same rate.
C) real interest rates rise.
D) real interest rates are unaffected.
E) real interest rates fall.
C
You might also like to view...
Any output combination inside a production possibilities frontier is associated with unused or underutilized resources
Indicate whether the statement is true or false
When a firm practices perfect price discrimination,
a. Consumer surplus is maximized b. Producer surplus is minimized c. Producer surplus is maximized d. None of the above
If the demand for cigarettes is inelastic, a per-unit tax on cigarettes will cause the quantity demanded to:
A. rise proportionally more than the increase in price caused by the tax. B. fall proportionally more than the increase in price caused by the tax. C. fall proportionally less than the increase in price caused by the tax. D. rise proportionally less than the increase in price caused by the tax.
How are demand-pull and cost-push inflation reflected in terms of the AD-AS model?
What will be an ideal response?