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Author Question: In the short run, when the Fed increases the nominal interest rate, the real interest rate A) ... (Read 51 times)

Pineapplelove6

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on: Jun 29, 2018
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.


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olderstudent

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Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

E


Pineapplelove6

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Reply 2 on: Jun 29, 2018
Excellent

chereeb

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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