In the medium run, an increase in the rate of growth of nominal money will cause
A) lower nominal and lower real interest rates.
B) lower nominal interest rates and no change in the real interest rate.
C) an increase in inflation and an increase in output growth.
D) a proportionate increase in inflation.
D
You might also like to view...
The largest part of the U.S. current account consists of
A) Fed transfers of U.S. dollars to other central banks. B) net transfer payments between the United States and Mexico. C) receipts from exports and payments for imports. D) net borrowing between the United States and other countries.
Suppose it costs Minnie's Mini-Golf (a monopolist) not a penny more to let another person on the course. If Minnie's faces a linear (downward-sloping) market demand curve, it will maximize profit by choosing the point on the demand curve at which
a. marginal revenue is greatest b. price elasticity is unit elastic c. price elasticity is inelastic d. price exceeds average total cost by the greatest amount e. price exceeds marginal cost by the greatest amount