In a perfectly competitive market, which of the following determines the market price?

Which of the following statements is (are) correct? According to real business cycle theory,

a. the desirable monetary policy would appear to be one that results in a slow steady growth in the money supply and, thus, stable prices. b. there is some role for activist monetary stabilization policy of a Keynesian type. c. changes in aggregate demand cannot impact output. d. Both a and b e. Both a and c

If the nominal interest rate is 5 percent and there is a deflation rate of 3 percent, what is the real interest rate?

a. 8 percent b. 2 percent c. 15 percent d. 1.7 percent