Combining what we learned from the quantity theory with


Combining what we learned from the quantity theory with what we learned about the fisher effect, we expect to see that, when a nation's M2 growth rate increased by 5%:

A - the inflation rate will fall by 5%

B - the real interest rate will rise by 5%

C - the nominal interest rate will rise by 5%

D - velocity will rise by 5%

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Business Economics: Combining what we learned from the quantity theory with
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