In general, under the monetary approach to the exchange rate, while the short-run interest rate does not depend on the absolute level of the money supply, continuing growth in the money supply eventually will affect the interest rate. b. while the long-run interest rate does depend on the absolute level of the money supply, continuing growth in the money supply does not affect the Interest rate. while the long-rua interest rate does not depend on the absolute level of the money supply, continuing growth in the money supply eventuaily will affect the interest rate. d. the long-run interest rate does not depend on the absolute level of the money supply, and thus continuing growth in the money supply will not affect the interest rate. None of the above statements is true, C.
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