When the price level rises and increases the demand for money, ...

[Shelles]

When the price level rises and increases the demand for money, the nominal interest rate ________ and the real interest rate ________.
 
  A) falls; rises
  B) rises; falls
  C) rises; rises
  D) falls; falls
  E) does not change; does not change

Question 2

Which of the following is true?
 
  i. A rational choice is always made in the pursuit of social interest.
  ii. Economics is a social science.
  iii. Economists try to understand how the economic world works by testing positive statements.
  A) only i B) ii and iii C) only ii D) i and ii E) only iii

[bitingbit]

Answer to Question 1

C

Answer to Question 2

B