If the Demand for Money Depends on the Nominal Interest

question 100

Multiple Choice

If the demand for money depends on the nominal interest rate, then via the quantity theory and the Fisher equation, the price level depends on:

• A) only the current money supply.
• B) only the expected future money supply.
• C) both the current and expected future money supply.
• D) neither the current nor the expected future money supply.

---

Definitions:

Employer Retaliation

Punitive actions taken by an employer against an employee who has engaged in legally protected activity, such as whistleblowing or filing a complaint.

Federal Wage-Hour Requirements

Regulations set by the government that establish minimum wage, overtime pay eligibility, and other standards for workers.

Interstate Commerce

Economic activities or transactions that cross state borders or affect more than one state, subject to federal regulation.

Overtime Pay

Additional compensation required by law or agreement for hours worked beyond the standard workweek.