If demand is perfectly inelastic, the absolute value of the price elasticity of demand is

What is the short-run and long-run effect on the nominal interest rate from an increase in the growth rate of the quantity of money?

What will be an ideal response?

Consider the production possibilities curve for an economy producing only two commodities wheat (represented on the X axis) and wine (represented on the Y axis). A movement up along the production possibilities curve [PPC] will imply:

a. an increase in wheat production. b. an increase in both wheat and wine production. c. a decline in both wheat and wine production. d. an increase in wine production. e. no change in either wheat or wine production.