Suppose that nominal interest rates double. As a result, the quantity of money doubles as well.

Name: Suppose that nominal interest rates double. As a result, the quantity of money doubles as well.
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The quantity of money in an economy is primarily determined by the central bank or monetary authority, not directly by changes in nominal interest rates. While higher interest rates can influence the demand for money, they do not automatically lead to a doubling of the money supply.

Suppose That Nominal Interest Rates Double