In the Short Run, an Increase in the Growth Rate

question 249

Multiple Choice

In the short run, an increase in the growth rate of the money supply ________ the nominal interest rate and in the long run it ________ the nominal interest rate.

• A) raises; raises
• B) raises; lowers
• C) lowers; raises
• D) lowers; lowers
• E) does not change; raises

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