Author Question: The quantity theory of money is a proposition about A) the nominal interest rate and the quantity ... (Read 42 times)

SGallaher96 · **on:** Jun 29, 2018

The quantity theory of money is a proposition about

A) the nominal interest rate and the quantity of money demanded.
B) the Fed's methods used to change the quantity of money.
C) nominal and real interest rates.
D) the relationship between financial assets and currency demanded.
E) the relationship between a change in the quantity of money and the price level.

Question 2

When the U.S. interest rate differential ________, the demand for dollars ________ and the demand curve for dollars shifts rightward.

A) rises; does not change
B) rises; decreases
C) falls; increases
D) rises; increases
E) falls; decreases