An increase in the ____ interest rate will lead to an increase in the ____

At a price level of 100, John has savings equal to $20,000. If the price level increases to 130, the buying power of John's savings is approximately

A) $26,000. B) $12,780. C) $30,000. D) $20,000. E) $15,400.

The proposition that the amount of goods and services produced in an economy in the long run is not affected by the price level is known as the ________

A) neutrality of money B) classical dichotomy C) quantity theory of money D) Fisher effect E) none of the above