The real interest rate is equal to the nominal interest rate minus:

Which of the following will NOT work to increase the rate of economic growth?

A) increase saving B) limit competition from international trade C) improve the quality of education D) All of the above will work to increase the rate of economic growth.

If a country was operating well below its long-run capacity (potential GDP), the initial impact of an unanticipated increase in the money supply would most likely result in an increase in

a. prices with little change in output. b. output with little change in prices. c. output and a decline in prices. d. prices and a decline in output.