In the short run, the nominal interest rate is affected by changes in the money supply perceived to be temporary, but once ___ adjust(s), the nominal interest rate ___ in the long run.
a. the supply of money; rises
b. the price level; will revert to its former level
c. expectations of interest rates; falls
d. real GDP; does not change
Ans: b. the price level; will revert to its former level
Economics
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