In the Very Short Run ________

question 52

Multiple Choice

In the very short run ________.

• A)the real interest rate will be affected by changes in the nominal rate
• B)monetary policy has an immediate effect on inflation
• C)the inflation rate is determined by the federal funds rate
• D)all of the above
• E)none of the above

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Definitions:

Gram

A unit of measurement for mass that is exactly one thousandth part of a kilogram.

Basic Unit

The fundamental, smallest, or simplest quantity or component in a system or set of measurements often used as a standard of measurement.

Metric System

A measurement system that uses the meter for length, liter for volume, and gram for weight or mass, all based on decimal calculations.

Ml

Milliliter, a unit of volume in the metric system equal to one thousandth of a liter.