The idea that people will substitute cheaper commodities for more expensive commodities is called

In the short run, the nominal interest rate is affected by changes in the money supply perceived to be temporary, but once ___ adjust(s), the nominal interest rate ___ in the long run.

a. the supply of money; rises b. the price level; will revert to its former level c. expectations of interest rates; falls d. real GDP; does not change

In actual financial markets, securities are __________ divisible, which __________ a type of market imperfection

A) perfectly, is B) perfectly, is not C) imperfectly, is D) imperfectly, is not