In the long run, money demand and money supply determine

Question

A. the value of money and the real interest rate.

B. the value of money but not the real interest rate.

C. the real interest rate but not the value of money.

D. neither the value of money nor the real interest rate.

Anonymous · Answer

In the long run, the interaction between money demand and money supply primarily determines: B. the value of money but not the real interest rate.

1 Answer