1.The change in aggregate demand resulting from an increase in household disposable income would affect money demand and nominal interest rates in which of the following ways? (B or E or neither?)

a. No change in money demand and nominal interest rates increase

b. Money demand increases and nominal interest rates increase

c. Money demand increases and nominal interest rates decrease

d. Money demand increases and no change in nominal interest rates

e. Money demand decreases and nominal interest rates are indeterminate

2.