Multiple Choice
Suppose that monetary neutrality and the Fisher effect both hold and the money supply growth rate has been the same for a long time.Other things the same a higher money supply growth would be associated with
A) both higher inflation and higher nominal interest rates.
B) a higher inflation rate,but not higher nominal interest rates.
C) a higher nominal interest rate,but not higher inflation.
D) neither a higher inflation rate nor a higher nominal interest rate.
Correct Answer:

Verified
Correct Answer:
Verified
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