To a potential borrower, which would be more important—the nominal interest rate or the real interest rate? Explain your answer. The money supply rises on Tuesday and by Thursday the interest rate has...

To a potential borrower, which would be more important—the nominal interest rate or the real interest rate?

Explain your answer.

The money supply rises on Tuesday and by Thursday

the interest rate has risen. Is this more likely the result

of the income effect or the expectations effect? Explain

your answer.