________ monetary policy causes the real interest rate to ________.
A) Expansionary; remain unchanged B) Contractionary; remain unchanged
C) Expansionary; rise D) Contractionary; rise
Question 2
The inflation rate is the
A) difference between the current period CPI and the base period CPI.
B) percentage change in the composition of the CPI market basket from the base year to the next year.
C) difference in the price level from one year to the next multiplied by 100.
D) difference between the base period CPI and the current period CPI.
E) percentage change in the CPI from one year to the next year.
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