Please explain the part I have highlighted , and the question, why is the production not affected by the nominal variables? why are those nominal variables? is it affected by the real variables? if so, why are the real variables examples?

Q20. For some time, the money supply is held constant and then there is a one-time decrease in the money supply, after which it is again constant at the new level. According to the theory presented in the text, what effects would we expect in the short run and the long run? i. in the short run, production will be decreased and interest rate will be increased. ii. in the short run, production will be increased and interest rate will be decreased. iii. in the long run, production will be decreased and interest rate will be increased. iv. in the long run, production will be increased and interest rate will be decreased. Choose one of the following options: A} i. is true, ii. is true, iii. is true, iv. is true B} i. is true, ii. is true, iii. is true, iv. is false C} i. is true, ii. is true, iii. is false, iv. is true D} i. is true, ii. is true, iii. is false, iv. is false E} i. is true, ii. is false, iii. is true, iv. is true F} i. is true, ii. is false, iii. is true, iv. is false G} i. is true, ii. is false, iii. is false, iv. is true H} i. is true, ii. is false, iii. is false, iv. is false I} i. is false, ii. is true, iii. is true, iv. is true J} i. is false, ii. is true, iii. is true, iv. is false K} i. is false, ii. is true, iii. is false, iv. is true L} i. is false, ii. is true, iii. is false, iv. is false M} i. is false, ii. is false, iii. is true, iv. is true N} i. is false, ii. is false, iii. is true, iv. is false 0} i. is false, ii. is false, iii. is false, iv. is true P} i. is false, ii. is false, iii. is false, iv. is false Answer: H Source: This question comes from the practice MCQs for chapter 8. Explanation: In the long run, production Is not affected by nominal variables, so iii. and iv. are both false. But in the short run, the drop in the money supply will push up interest rates and reduce real output, so i. is true and ii. is false