In the Long Run, Decreases in the Growth Rate of the Money

question 111

Multiple Choice

In the long run, decreases in the growth rate of the money supply will ________ nominal rates of interest and ________ real rates of interest.

• A) decrease; increase
• B) decrease; decrease
• C) increase; increase
• D) decrease; not affect

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Definitions:

Transformation Process

The method by which inputs (such as raw materials, information, or labor) are converted into outputs (products or services) by an organization.

Continuous Manufacturing Organizations

Companies that use continuously running assembly lines, creating products with many similar characteristics.