In the Short Run, the Nominal Interest Rate Is Affected

question 77

Multiple Choice

In the short run, the nominal interest rate is affected by changes in the money supply perceived to be temporary, but once ____ adjust(s) , the nominal interest rate ____ in the long run.

• A) the supply of money; rises
• B) the price level; will revert to its former level
• C) expectations of interest rates; falls
• D) real GDP; does not change

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Definitions:

Metacarpals

The five long bones in the hand located between the wrist and the fingers.

Phalanges

Bones of the fingers and toes in humans and other vertebrates, making up the digits.

Ulna

A long bone found in the forearm that stretches from the elbow to the smallest finger, and when in anatomical position, is located on the medial side of the forearm.

Sacral Hiatus

An opening at the base of the sacral bone in the back, through which nerves and membranes can pass.