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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%

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M92000256

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