Multiple Choice
Under the assumptions of the Fisher effect and monetary neutrality,if the money supply growth rate falls,then
A) both the nominal and the real interest rate fall.
B) neither the nominal nor the real interest rate fall.
C) the nominal interest rate falls,but the real interest rate does not.
D) the real interest rate falls,but the nominal interest rate does not.
Correct Answer:
Verified
Correct Answer:
Verified
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