The long-run effect of an increase in the growth rate of the ...

[daltonest1984]

The long-run effect of an increase in the growth rate of the quantity of money is a
 
  A) higher nominal interest rate.
  B) lower nominal interest rate.
  C) lower real interest rate.
  D) lower inflation rate.
  E) higher real interest rate.

Question 2

If purchasing power parity exists and the exchange rate is 1.50 U.S. dollars per British pound, than a latte that has a price of 4.00 in San Jose, California, has a price of ________ in London, England.
 
  A) 2.67 pounds B) 4.00 pounds C) 8.00 pounds D) 0.37 pounds E) 6.00 pounds

[tashiedavis420]

Answer to Question 1

A

Answer to Question 2

A

[daltonest1984]

Excellent

[ryansturges]

TYSM