The claim that increases in the growth rate of the money supply increase nominal but not real interest rates is known as the

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The claim that increases in the growth rate of the money supply increase nominal but not real interest rates is known as the Fisher Effect, named after economist Irving Fisher. The Friedman Effect is a term used to describe the idea that changes in the money supply have a direct and proportional effect on prices in the long run, whereas the Hume Effect is a theory that suggests that there is a short-term relationship between changes in the money supply and the level of economic activity. Therefore, neither A nor B are the correct answer.

The Claim That Increases in the Growth Rate of the Money