People know that the inflation rate will decrease from 7 percent ...

[ss2343]

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.

[scottmt]

Answer to Question 1

A

Answer to Question 2

A

[ss2343]

Thank you

[scottmt]

No problemo