Multiple Choice
Which of the following is true?
A) The quantity of money demanded varies inversely with the nominal rate of interest.
B) Money market equilibrium occurs at that nominal interest rate where the quantity of money demanded equals the quantity of money supplied.
C) Rising national income will shift the demand for money to the right, leading to a new higher equilibrium nominal interest rate.
D) All of the above are true.
Correct Answer:
Verified
Correct Answer:
Verified
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