In the Short Run, When the Fed Increases the Nominal

question 155

Multiple Choice

In the short run, when the Fed increases the nominal interest rate, the real interest rate

• A) temporarily rises.
• B) permanently rises.
• C) temporarily falls.
• D) permanently falls.
• E) does not change.

---

Definitions:

Epoch

A significant period in history or in the development of the earth, marked by notable events or characteristics.

Awash River

A major river in Ethiopia, which plays a crucial role in the agriculture, water supply, and ecosystem of the region.

Genus Homo

The genus Homo is a classification for the human species and its closest extinct relatives, characterized by bipedalism, larger brains compared to body size, and complex tool use.

Paleontologists

Scientists who study fossils to understand the history of life on Earth, including the evolution and extinction of species.