Business, 26.02.2020 00:14 Swetjyil

If the real interest rate and real national income are constant, according to the quantity theory and the Fisher effect, a 1 percent increase in money growth will lead to rises in:
a. inflation of 1 percent and the nominal interest rate of less than 1 percent.
b. inflation of 1 percent and the nominal interest rate of more than 1 percent.
c. both inflation and the nominal interest rate of less than 1 percent. d. inflation of 1 percent and the nominal interest rate of 1 percent.

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If the real interest rate and real national income are constant, according to the quantity theory an...

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