According to the quantity theory of money, if the money supply grows at 20 percent and real GDP grows at 5 percent, then the inflation rate will be

Which of the following statements is TRUE about the interest rate effect?

A) The interest rate effect is why the aggregate demand curve is upward sloping. B) A lower price level lowers the interest rate, which causes businesses and consumers to increase their desired spending. C) A higher price level lowers the interest rate, which causes business and consumers to increase their desired spending. D) Expenditures will change as a result of a change in the real value of money balances when there is a change in the price level.

In 2001, Greece had a per-capita GDP ________ percent lower than Netherlands' per-capita GDP.

A. 20 B. 40 C. 30 D. 50