In the long run, the nominal interest rate is
A) negatively related to the inflation rate.
B) positively related to the inflation rate.
C) negatively related to the price level.
D) positively related to the price level.
E) not related to the price level or the inflation rate.
Question 2
________ increases the quantity of real GDP supplied and is shown as a movement along the AS curve.
A) An increase in potential GDP
B) A decrease in the quantity of money
C) A rise in the price level
D) A decrease in consumption expenditure
E) A fall in the expected rate of profit
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