7. It e sent a bank B interested in stablizing ourpur Ructuations, what is the correct action/ (a) Raise the real interest rate to 0.0512. (b) Lower the real interest rate to 0.0113. (c) Raise the real interest rate to 0.0482. (d) Lower the real interest rate to 0.0316. 12. If the central bank takes the correct action as described in the previous question, (a) Output stays at its trend level, investment rises, exports fall, and inflation rises. (b) Output stays at its trend level, investment falls, exports fall, and inflation stays con- stant. (c) Output stays at its trend level, investment rises, exports fall, and inflation stays con- stant. (d) Output rises, investment rises, exports fall, and inflation stays constant. 13. If the current level of long-run output is 254 and actual output is 231, short-run output is: (a) -23 %. (6) -0.23 %. (c) -0.091%. (d) -9.1%. 14. The Fisher equation: (a) Relates short-run output, the real interest rate, and investment. (b) Relates the nominal interest rate, the real interest rate, and the rate of growth in con-sumption. (c) Relates the nominal interest rate, the real interest rate, and the rate of growth in prices. (d) Relates the