An unexpected change in the nominal interest rate will:
A) change the real interest rate by a smaller amount than the change in the nominal interest rate in the short run
B) change the real interest rate by a greater amount than change in the nominal interest rate in the short run.
C) change the real interest rate by the same amount as the change in the nominal interest rate in the short run.
D) change the real interest rate by a smaller amount than the change in the nominal interest rate in the long run.
E) change the real interest rate by a greater amount than the change in the nominal interest rate in the long run.
Correct Answer:
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