Suppose That Monetary Neutrality and the Fisher Effect Both Hold

question 76

Multiple Choice

Suppose that monetary neutrality and the Fisher effect both hold.An increase in the money supply growth rate increases

• A)the inflation rate and nominal interest rates.
• B)the inflation rate,but not nominal interest rates.
• C)nominal interest rates,but not the inflation rate.
• D)neither the inflation rate nor nominal interest rates.

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