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20 July, 09:55

Other things equal, if there is an increase in nominal GDP, bond prices will rise. the interest rate will rise. consumption spending will fall. the demand for money will decrease.

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  1. 20 July, 10:04
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    the interest rate will rise

    Explanation:

    For the nominal GDP to increase, the money supply must have increased. This will lead to a higher inflation rate, which will rise the interest rate. Since the interest rate increased, the price of bonds will decrease. Since the money supply increased, private consumption will increase.
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