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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Definitions:

Quantifier Negation

The process of negating the quantifiers in a statement, such as changing "all" to "not all" or "some" to "none".

Existential Generalization

A logical operation that infers the existence of at least one member of a domain that satisfies a certain property from a specific case.

Existential Instantiation

A logical principle that derives the existence of a particular instance of a predicate within a domain of discourse from a general statement.

Universal Instantiation

A logical rule stating that if something is true for everything in a certain set, then it is true for any specific thing in that set.