An Increase in the Interest Rates Will

question 91

Multiple Choice

An increase in the interest rates will:

• A)cause people to hold less money, which in turn means that the velocity of money increases
• B)cause people to hold less money, which in turn means that the velocity of money decreases
• C)cause people to hold more money, which in turn means that the velocity of money increases
• D)cause people to hold more money, which in turn means that the velocity of money decreases
• E)cause people to hold more money, which in turn means that the nominal GDP decreases