If the Nominal GDP Rises by 3 Percent and the Price

question 17

Multiple Choice

If the nominal GDP rises by 3 percent and the price level rises by 5 percent,then the real GDP __________ by __________.

• A)rises;8 percent
• B)falls;8 percent
• C)rises;2 percent
• D)falls;2 percent
• E)none of the above

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Definitions:

Money Market Mutual Funds

Investment funds that invest in short-term, high-quality debt securities and aim to offer returns with minimal risk, providing investors with liquidity and a modest income.

Difficulties

Challenges or obstacles that may impede progress, require problem-solving, or necessitate adaptation.

Deregulating Banks

Deregulating Banks involves reducing the rules and regulations imposed on banks with the aim of increasing financial institutions' ability to operate freely and innovate.

Financial Institutions

Organizations that provide financial services, including banks, credit unions, insurance companies, and investment firms, to individuals and businesses.