If the Slope of the Monetary Policy Rule Line Is

question 108

Multiple Choice

If the slope of the monetary policy rule line is 2, then when inflation rises by 1 percent, the

• A)nominal interest rate rises by 2 percent.
• B)nominal interest rate rises by 1 percent.
• C)nominal interest rate rises by 3 percent.
• D)real interest rate rises by 2 percent.
• E)real interest rate rises by 3 percent.

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