Given the Equation of Exchange, MV = PY, When Central

Multiple Choice

Given the equation of exchange, MV = PY, when central bankers control short-term nominal interest rates by adjusting the level of reserves in the banking system, their actions are expected to primarily affect:

A) the rate of growth of V.
B) the value of V.
C) potential Y as opposed to current Y.
D) the rate of growth of M.