The ________ problem helps to explain why the private production and sale of information cannot eliminate ________

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.

If the Fed responds to an increase in government spending with the goal of stable prices and output, which of the following would be the result?

a. A larger multiplier effect than normal b. Partial crowding out c. An increase in consumption and investment spending d. No crowding out e. Complete crowding out