Suppose the Real Interest Rate Is 4% and the Expected

question 32

Multiple Choice

Suppose the real interest rate is 4% and the expected inflation rate is 3%.If the money supply increases by 10% and output,the real interest rate,and the expected inflation rate are unchanged,then the price level increases by

• A)3%.
• B)4%.
• C)7%.
• D)10%.

---

Definitions:

Glycine

The simplest amino acid, used in the body for the synthesis of proteins.

Gly

Glycine, the simplest amino acid, with the chemical formula NH2CH2COOH.

Glycine

The simplest amino acid, with the chemical formula NH2CH2COOH, involved in protein synthesis.

Lys

Short for Lysine, an essential amino acid important for protein synthesis and various metabolic processes in the body.