Author Question: The natural rate hypothesis concludes that the inflation rate increases, then in the short run there ... (Read 67 times)

EY67 · **on:** Jun 29, 2018

The natural rate hypothesis concludes that the inflation rate increases, then in the short run there is

A) a downward movement along the short-run Phillips curve.
B) an upward movement along the short-run Phillips curve.
C) no change at all in the short-run Phillips curve.
D) an upward shift of the short-run Phillips curve.
E) a downward shift of the short-run Phillips curve.

Question 2

In the long run, the real interest rate is determined by

A) the nominal interest rate.
B) saving supply and investment demand.
C) the multiplier effect.
D) the expected inflation rate.
E) Fed actions.