Velocity represents the average number of times that a dollar is used in purchasing final goods and services in a one-year period

A rise in the rate of people's time preference in general tends to

A) increase interest rates. B) decrease interest rates. C) have no effect on interest rates. D) have no effect at all in the market for credit.

In the short run, movements in exchange rates are caused largely by economic fluctuations

a. True b. False