Under the assumptions of the Fisher effect and monetary neutrality, if the money supply growth rate rises, then A. the nominal interest rate rises, but the real interest rate does not. B. the real interest rate rises, but the nominal interest rate does not. C. neither the nominal nor the real interest rate rise. D. both the nominal and the real interest rate rise.

Under the assumptions of the Fisher effect and monetary neutrality, if the money supply growth rate rises, then A. the nominal interest rate rises, but the real interest rate does not. B. the real interest rate rises, but the nominal interest rate does not. C. neither the nominal nor the real interest rate rise. D. both the nominal and the real interest rate rise.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter14: Money And The Economy

Section: Chapter Questions

Problem 5WNG

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