Every day ________ adjusts to make the quantity of money demanded equal the quantity of money supplied.
A) the inflation rate
B) the nominal interest rate
C) the quantity of money
D) potential GDP
E) real GDP

Question

Quizplus · Accepted Answer

The nominal interest rate adjusts to balance the quantity of money demanded with the quantity of money supplied, as it influences the cost of borrowing and the incentive to hold money.

Every Day ________ Adjusts to Make the Quantity of Money