Which of the Following Statements Is True

question 44

Multiple Choice

Which of the following statements is true?

• A)The quantity of money demanded varies inversely with the nominal interest rate, and the supply of money varies directly with the nominal interest rate.
• B)The quantity of money demanded varies directly with the nominal interest rate, and the supply of money varies inversely with the nominal interest rate.
• C)The quantity of money demanded varies inversely with the nominal interest rate, while the supply of money remains unaffected by the nominal interest rate
• D)The quantity of money supplied varies inversely with the nominal interest rate, while the supply of money remains unaffected by the nominal interest rate
• E)The supply of money varies inversely with the nominal interest rate, while the quantity of money demanded remains unaffected by the nominal interest rate

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