In the short run, an increase in the growth rate of the quantity ...

[kfurse]

In the short run, an increase in the growth rate of the quantity of money ________ the nominal interest rate and in the long run it ________ the nominal interest rate.
 
  A) lowers; lowers
  B) raises; lowers
  C) lowers; raises
  D) raises; raises
  E) does not change; raises

Question 2

If the marginal propensity to consume is very close to zero, then the multiplier
 
  A) cannot be calculated.
  B) is very close to one.
  C) is very large.
  D) is very close to zero.
  E) might be negative if the marginal tax rate is large enough.

[iman]

Answer to Question 1

C

Answer to Question 2

B

[kfurse]

Excellent

[amandanbreshears]

Gracias!