-Refer to Exhibit 8-2

question 133

Multiple Choice

-Refer to Exhibit 8-2.What word (rises or falls) should go in blank (3) and blank (4) ,respectively,to summarize the resulting impact on short run equilibrium of the given change in the economy?

• A) rises; rises
• B) falls; falls
• C) rises; falls
• D) falls; rises

---

Definitions:

Nominal Interest Income

The income earned from investments or savings before adjusting for inflation, expressed in the current currency.

Money Supply

The sum quantity of financial assets in an economy at a particular instant.

Creditors

Individuals or institutions that lend money or extend credit to others, expecting repayment in the future.

Debtors

Individuals or entities that owe money to others.