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Clear solving and explanation please (f) (4 points) Is it possible that the real interest rate increases while the nominal in- terest rate falls? Explain

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Clear solving and explanation please

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(f) (4 points) Is it possible that the real interest rate increases while the nominal in- terest rate falls? Explain Total for Question 1: 38 2. The Medium Run (a) (6 points) Assume that the mark-up companies can charge is 10% and the wage setting relationship is described with the following equation: W = P(1 - u). Calculate the real wage and the natural rate of unemployment

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