Essentials of Economics 7th Edition by Gregory Mankiw

Exercise 10

According to the quantity theory of money and the Fisher effect, if the central bank increases the rate of money growth,
A) inflation and the nominal interest rate both increase.
B) inflation and the real interest rate both increase.
C) the nominal interest rate and the real interest rate both increase.
D) inflation, the real interest rate, and the nominal interest rate all increase.