Question 6 Which of the following are true about the nominal interest rate, i? There may be more than one answer. a) In the short-run, i is determined by the IS-LM system. b) In the long-run, i is determined by the IS-LM system. c) If expected inflation 7° drops, i must drop in the short-run. d) If expected inflation rº rises, i must rise in the long-run.

Question 6 Which of the following are true about the nominal interest rate, i? There may be more than one answer. a) In the short-run, i is determined by the IS-LM system. b) In the long-run, i is determined by the IS-LM system. c) If expected inflation 7° drops, i must drop in the short-run. d) If expected inflation rº rises, i must rise in the long-run.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: Money Growth And Intlation

Section: Chapter Questions

Problem 6PA

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