There are fewer workers per retiree today contributing to Social Security than there were in the 1960s

If the Taylor Principle is not followed and nominal interest rates are increased by less than the increase in the inflation rate, then real interest rates will ________ and monetary policy will be too ________

A) rise; tight B) rise; loose C) fall; tight D) fall; loose

Which of the following would most likely cause Graph B to shift to the right?

a. a decline in a country's poverty level
b. an increase in a country’s minimum wage
c. a country’s standard of living increasing
d. a country going through an economic depression