Question: Consider two economies, A and B, with the same constant growth rate of nominal money supply and a constant real interest rate / = 0.03.

Consider two economies, A and B, with the same constant growth rate of nominal money supply and a constant real interest rate / = 0.03. Also assume the economies' output grows at the same rate of 0.03. Which of the following comparisons is NOT valid? O A. If YA > MyB. then MA > AB. O B. The growth rates of the real demand for money in the two economies may differ. O C. The nominal interest rates of the two economies may may not be the same. O D. If YA = WyB, then #A = #B
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
