Everything else held constant, when output is ________ the natural rate level, wages will begin to ________, decreasing short-run aggregate supply

Individuals will increase their saving as

A) the interest rate falls. B) the interest rate increases. C) the rate of unemployment increases. D) business investment falls.

If the money interest rate is 7 percent and the inflationary premium 4 percent, the real interest rate is

a. -3 percent. b. 3 percent. c. 4 percent. d. 7 percent.