Which of the following statements is true?
A) The quantity of money demanded varies inversely with the nominal interest rate, and the supply of money varies directly with the nominal interest rate.
B) The quantity of money demanded varies directly with the nominal interest rate, and the supply of money varies inversely with the nominal interest rate.
C) The quantity of money demanded varies inversely with the nominal interest rate, while the supply of money remains unaffected by the nominal interest rate
D) The quantity of money supplied varies inversely with the nominal interest rate, while the supply of money remains unaffected by the nominal interest rate
E) The supply of money varies inversely with the nominal interest rate, while the quantity of money demanded remains unaffected by the nominal interest rate
Correct Answer:
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