If the inflation rate is 5% and the nominal interest rate is 4%, then the real interest rate is around

If the quantity of money starts to grow more rapidly than real GDP and velocity does not change, the result is

A) slower growth in the price level. B) an increase in investment. C) more rapid growth in potential GDP. D) the inflation rate rises. E) an eventual slowing in the growth rate of the quantity of money.

Unlike the 1930s, the Federal Reserve System followed an easy money policy in the first decade of the 2000s and, consequently, was able to prevent a severe recession from following a period of notably high economic activity

Indicate whether the statement is true or false