5. According to the quantity theory of money and the Fisher effect, what happens if the central...

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5. According to the quantity theory of money and the Fisher effect, what happens if the central bank increases the rate of money growth?

a. inflation and the nominal interest rate both increase

b. inflation and the real interest rate both increase

c. the nominal interest rate and the real interest rate both increase

d. inflation, the real interest rate, and the nominal interest rate all increase

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Principles Of Macroeconomics

ISBN: 9780176591977

7th Canadian Edition

Authors: N. Mankiw, Ronald Kneebone, Kenneth McKenzie

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