In the above figure, suppose the economy is initially on the demand for money curve MD1. What is the effect of a rise in the nominal interest rate?

As the economy nears the end of an expansion, interest rates usually ________ and wages rise more ________ than prices

A) fall; rapidly B) fall; slowly C) rise; slowly D) rise; rapidly

Which of the following is not another way of describing the marginal propensity to consume?

a. MPC b. The slope of the consumption function c. The change in real consumption spending divided by the change in real disposable income d. The amount by which real consumption spending rises when real disposable income increases by one dollar e. Autonomous consumption spending