If M = 3,000 . P = 2, and Y = 6,000 . what is velocity?

In the long run, the nominal exchange rate

A) is a monetary phenomenon, determined by the quantities of money in two countries. B) is not related to the real exchange rate, since the real exchange rate is the true value of currencies. C) will not change if prices in one country change, since prices are nominal variables. D) is fixed by world central banks, as indicated by the fixed exchange rate system.

The law of demand says that the lower the price, the

a. greater is the quantity demanded b. greater is the demand for the good c. smaller is the demand for the good d. smaller is the quantity demanded e. larger is the supply of the good