Author Question: In the short run, an increase in the growth rate of the quantity of money ________ the nominal ... (Read 65 times)

kfurse · **on:** Jun 29, 2018

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.