According to Monetary Neutrality and the Fisher Effect, an Increase

question 365

Multiple Choice

According to monetary neutrality and the Fisher effect, an increase in the money supply growth rate eventually increases

• A)inflation, nominal interest rates, and real interest rates.
• B)inflation and nominal interest rates, but does not change real interest rates.
• C)inflation and real interest rates, but does not change nominal interest rates.
• D)neither inflation, nominal interest rates, or real interest rates.

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