If Inflation Does Not Adjust Rapidly in the Short Run

question 162

Multiple Choice

If inflation does not adjust rapidly in the short run, then when the Federal Reserve increases the nominal interest rate, the real interest rate in the short run will:

• A)increase.
• B)decrease.
• C)not change.
• D)be determined by saving and investment decisions.

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Being calm and self-possessed; serenity in behavior or attitude.

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