If the price level is 2, real GDP is $50 billion, and the quantity of money is $4 billion, then velocity is

As a country begins to liberalize its capital account, what would you expect to happen to the difference between the interest rates for similar assets in this country and another country with open capital markets?

A) get larger B) get smaller C) stay the same D) it depends on the existing exchange rate. E) exponential divergence

An increase in the demand for bonds will increase both the price of bonds and the quantity of bonds held

a. True b. False