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.

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Definitions:

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