When the price level rises and increases the demand for money, the nominal interest rate ________ and the real interest rate ________
A) falls; rises
B) rises; falls
C) rises; rises
D) falls; falls
E) does not change; does not change
C
Economics
You might also like to view...
The figure above provides information about Light-U-Up Utilities, which is a natural monopoly that provides electricity. If Light-U-Up is regulated, what is its economic profit if it must follow a marginal cost pricing rule?
A) -$40 B) -$20 C) $0 D) $30
Economics
Which of the following would cause the LM curve to shift to the right?
A) increased money supply B) a larger U.S. capital account deficit C) a depreciation of the dollar D) lower level of U.S. income
Economics