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Suppose in an economy the growth rate of output increases from 2 to 3 percent. The growth rate of money increases from 4 to 6
- Suppose in an economy the growth rate of output increases from 2 to 3 percent. The growth rate of money increases from 4 to 6 percent. The velocity of money is constant. According to the (ex-post) Fisher effect you would expect the nominal interest rate to
A.rise by 1 percentage point.
B.fall by 1 percentage point.
C.fall by 2 percentage points.
D.rise by 2 percentage points.
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Managerial Economics
Authors: Paul Keat, Philip K Young, Steve Erfle
7th edition
0133020266, 978-0133020267
