Multiple Choice
A perceived permanent rise in the rate of money growth will cause what long-run effects in the economy?
A) a rise in the nominal rate of interest and a rise in inflation by the same percentage
B) a rise in the nominal rate of interest and a rise in real GDP by the same percentage
C) a fall in the nominal rate of interest and a rise in inflation by the same percentage
D) a fall in the nominal rate of interest and a fall in real GDP by the same percentage
Correct Answer:
Verified
Correct Answer:
Verified
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