Which of the following statements is the MOST accurate? In general, under the monetary approach to the exchange rate
A) the interest rate is not independent of the money supply growth rate in the short run.
B) the interest rate is independent of the money supply growth rate in the long run.
C) the interest rate is not independent of the money supply growth rate in the long run, but independent in the short run.
D) the interest rate is not independent of the money supply growth rate in the long run.
E) the interest rate is a factor of the money supply growth rate only in the short term.
D
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The United States has never experienced double-digit inflation
a. True b. False
Which of the following mechanisms helps output to return to potential after a supply shock?
a. A change in the nominal wage b. Changes in business decision making strategies c. Changes in the capital stock d. The rigidity of the price level e. Changes in inventories
The two measures of the degree of competitiveness (or of oligopoly) are called (1) _________________ and (2) _________________.
Fill in the blank(s) with the appropriate word(s).
How has the composition of trade flows changed from the early 20th century to today? Compared to the past, is anything about trade today new?
What will be an ideal response?