In the long run, an increase in the growth rate of the money supply leads to an increase in the real interest rate, but no change in the nominal interest rate

The most plausible reason why changes in the price of cotton can cause shifts in the supply curve for tobacco is

a. cigarette smokers often wear cotton shirts b. when incomes rise, people consume more cotton and tobacco c. firms can switch from growing tobacco to cotton and vice versa d. tobacco is an input in the production of cotton e. cotton and tobacco are unrelated markets in all ways

The financing of investment spending is often made possible by

a. consumer spending. b. money supply creation. c. borrowing. d. tax reductions.