Explain the change in the nominal interest rate in the short run if a. Real GDP increases.

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Explain the change in the nominal interest rate in the short run if
a. Real GDP increases.
b. The money supply increases.
c. The price level rises.

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Macroeconomics Canada in the Global Environment

ISBN: 978-0321778109

8th edition

Authors: Michael Parkin, Robin Bade

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Question Posted: Dec 19, 2015 04:56 AM

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Explain the change in the nominal interest rate in the short run if a. Real GDP increases.

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a The nominal interest rate rises When real GDP increases the quantity of money demanded increases ...View the full answer

Macroeconomics Canada in the Global Environment

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