In the short run, when the Fed increases the nominal interest ...

[Pineapplelove6]

In the short run, when the Fed increases the nominal interest rate, the real interest rate
 
  A) permanently falls.
  B) does not change.
  C) permanently rises.
  D) temporarily rises.
  E) temporarily falls.

Question 2

Comparing the short-run Phillips curve and the long-run Phillips curve, we see that there is
 
  A) no relationship between the two curves.
  B) no tradeoff in either curve.
  C) a tradeoff in both curves.
  D) only a long-run tradeoff between inflation and unemployment but not a short-run tradeoff.
  E) only a short-run tradeoff between inflation and unemployment but not a long-run tradeoff.

[olderstudent]

Answer to Question 1

D

Answer to Question 2

E

[Pineapplelove6]

Gracias!

[nothere]

Excellent