Ask Question
26 March, 23:34

In the long run, money demand and money supply determine

a. the price level but not the real interest rate.

b. the price level and the real interest rate.

c. the real interest rate but not the price level.

d. neither the price level nor the real interest rate.

+3
Answers (1)
  1. 27 March, 01:56
    0
    Money demand refers to how much wealth people want to hold in liquid form and depends on the price level and the interest rate.

    In the long run, money demand and money supply determine the price level but not the real interest rate.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “In the long run, money demand and money supply determine a. the price level but not the real interest rate. b. the price level and the real ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers