Multiple Choice
If nominal interest rates increase:
A) the expected inflation rate must have gone up.
B) the real interest rate must have gone up.
C) either the expected inflation rate went up, the real interest rate went up, or both.
D) either the expected inflation rate went down, the real interest rate went down, or both.
Correct Answer:

Verified
Correct Answer:
Verified
Q92: A reduction in the federal funds rate
Q93: Monetary policy directly affects:<br>A)social spending.<br>B)tax rates.<br>C)the availability
Q94: Which of the following is an operating
Q95: If banks are short of reserves, the
Q96: Using the Taylor rule, if inflation is
Q98: In the AS/AD model, an increase in
Q99: To achieve its target when the federal
Q100: Assuming an economy is initially at potential
Q101: Refer to the graph shown. Suppose the
Q102: Define open market operations,and explain how executing