13. The Fisher effect assumes that (a) the money supply is not influenced by nominal variables. (b) the velocity of money is not influenced by nominal variables. (c) the real interest rate is not influenced by nominal variables. (d) the inflation rate is not influenced by nominal variables. 14. Suppose that the inflation rate increases from 1% to 2%. According to the Fisher effect, the nominal interest rate will a) increase by 1%. (b) increase to 2%. (c) increase by 2%. (d) increase to 3%. 15. Suppose that it has been estimated that the velocity of money is stable at 5. There is $200 of money in the economy, and there are 100 transactions in a year. What is the average value of each transaction? (a) 0.1 (b) 10 (c) 100 (d) 1000 16. If the actual inflation rate turns out to be lower than the expected inflation rate, (a) firms will have to incur additional menu costs. (b) people will have to incur additional shoeleather costs. (c) wealth will be redistributed from debtors to creditors. (d) wealth will be redistributed from creditors to debtors. 17. The government's right to collect inflation tax is derived from its right to (a) raise tax. (b) print money. (c) borrow from the public by issuing bond. (d) have a budget deficit