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Author Question: People know that the inflation rate will decrease from 7 percent to 3 percent. As a result A) the ... (Read 75 times)

ss2343

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People know that the inflation rate will decrease from 7 percent to 3 percent. As a result
 
  A) the nominal interest rate falls by 4 percentage points.
  B) the nominal interest rate is constant.
  C) the nominal interest rate rises by 4 percentage points.
  D) the nominal interest rate equals 3 percent.

Question 2

A movement along the aggregate production function is the result of a change in
 
  A) the quantity of labor.
  B) technology.
  C) capital.
  D) interest rates.



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scottmt

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Answer to Question 1

A

Answer to Question 2

A





 

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