In the Short Run, the Nominal Interest Rate Is Affected

Multiple Choice

In the short run, the nominal interest rate is affected by changes in the money supply perceived to be temporary, but once ____ adjust(s) , the nominal interest rate ____ in the long run.

A) the supply of money; rises
B) the price level; will revert to its former level
C) expectations of interest rates; falls
D) real GDP; does not change