Which of the Following Is True

question 72

Multiple Choice

Which of the following is true?

• A)The quantity of money demanded varies inversely with the rate of interest.
• B)Money market equilibrium occurs at that nominal interest rate where the quantity of money demanded equals the quantity of money supplied.
• C)Rising national income will shift the demand for money to the right, leading to a new higher equilibrium nominal interest rate.
• D)An increase in the money supply will lead to lower interest rates and an increase in aggregate demand.
• E)All of the above are true.

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