Author Question: The long-run effect of a decrease in the growth rate of the quantity of money is a A) higher real ... (Read 95 times)

jlmhmf · **on:** Jun 29, 2018

The long-run effect of a decrease in the growth rate of the quantity of money is a

A) higher real interest rate.
B) lower nominal interest rate.
C) higher inflation rate.
D) higher nominal interest rate.
E) lower real interest rate.

Question 2

If a nation devotes a larger share of its current production to consumption goods, then

A) it must produce at a point within its PPF.
B) its economic growth will slow down.
C) some productive factors will become unemployed.
D) its PPF will shift inward.
E) its PPF will shift outward.