Under the Assumptions of the Fisher Effect and Monetary Neutrality,if

question 140

Multiple Choice

Under the assumptions of the Fisher effect and monetary neutrality,if the money supply growth rate falls,then

• A)both the nominal and the real interest rate fall.
• B)neither the nominal nor the real interest rate fall.
• C)the nominal interest rate falls,but the real interest rate does not.
• D)the real interest rate falls,but the nominal interest rate does not.

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