Under the assumptions of the Fisher effect and monetary neutrality, if the money supply growth rate falls, then
a. both the nominal and the real interest rate fall.
b. neither the nominal nor the real interest rate fall.
c. the nominal interest rate falls, but the real interest rate does not.
d. the real interest rate falls, but the nominal interest rate does not.
c
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All else equal, forecasting your firm's demand is likely to be less profitable if any of the following are true except for which one?
A) It is difficult to obtain an accurate forecast of your firm's demand. B) Your firm experiences small fluctuations in demand. C) A change in your output level leads to a large change in the firm's marginal cost. D) A change in your output level leads to a small change in the firm's marginal cost.
The salary of an athlete like Peyton Manning is in part a reward for his unique ability-something economists call economic rent
a. True b. False Indicate whether the statement is true or false
Suppose the MPC is 0.60 . Assume there are no crowding out or investment accelerator effects. If the government increases expenditures by $200 billion, then by how much does aggregate demand shift to the right? If the government decreases taxes by $200 billion, then by how much does aggregate demand shift to the right?
a. $300 billion and $180 billion b. $300 billion and $300 billion c. $500 billion and $300 billion d. $500 billion and $500 billion
If the dollar appreciates in value relative to foreign currencies, aggregate demand ________.
A. increases because net exports increase B. decreases because consumption decreases C. decreases because net exports decrease D. increases because consumption increases