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Which of the following statements is the MOST accurate? In general, under the monetary approach to t

Chako

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Which of the following statements is the MOST accurate? In general, under the monetary approach to t

Which of the following statements is the MOST accurate? In general, under the monetary approach to the exchange rate
A) the long-run interest rate does not depend on the absolute level of the money supply, and thus continuing growth in the money supply will not affect the interest rate.
B) while the short-run interest rate does not depend on the absolute level of the money supply, continuing decline in the money supply eventually will not affect the interest rate.
C) while the long-run interest rate does not depend on the absolute level of the money supply, continuing growth in the money supply eventually will affect the interest rate.
D) while the short-run interest rate does not depend on the absolute level of the money supply, continuing growth in the money supply eventually will affect the interest rate.
E) while the long-run interest rate does depend on the absolute level of the money supply, continuing growth in the money supply do not affect the interest rate.

Textbook

International Economics: Theory and Policy

Edition: 10^th

Author: Krugman

Read 100 times

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machukian

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Chako Author

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8 years ago

Good answer, thank you

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machukian

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8 years ago

Don't forget to vote my answer as best Nerd Face

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