In the short run in the Keynesian model, a sharp decline in oil prices would leave the economy with a ________ level of output and a ________ real interest rate

A) higher; lower
B) lower; higher
C) lower; lower
D) higher; higher

A

Economics

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Suppose there currently is an inflationary ga

A) Reduce government spending. B) Increase government spending. C) Reduce the nation's aggregate supply. D) nothing

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When the nominal interest rate rises, the

A) quantity of money demanded decreases. B) demand for money decreases. C) demand for money increases. D) quantity of money demanded increases.

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