If the money wage rate rises relative to the price level, firms ________ the quantity of labor they demand and workers ________ the quantity of labor they supply

Suppose that the nominal interest rate increases while the expected inflation rate rises. Given this information, we know with certainty that the real interest rate

A) will not change. B) will fall. C) will fall, but only if the increase in the nominal rate is smaller than the increase in expected inflation. D) will fall, but only if the increase in the nominal rate is greater than the increase in expected inflation. E) none of the above

Normal goods have negative income elasticities of demand, while inferior goods have positive income elasticities of demand

a. True b. False Indicate whether the statement is true or false