Mergers often do not lead to value creation

Which of the following statements is true of the quantity theory of money?

A) The theory explains the relationship between growth in real GDP and changes in nominal interest rates. B) The theory states that inflation will always be positive. C) Predictions of the theory can be verified with data. D) The theory is applicable only in the short run.

Every point on an open-economy IS curve represents:

A) combinations of interest rates and the supply of money, which result in equilibrium in the money market. B) combinations of interest rates and levels of production, which result in equilibrium in the goods market. C) combinations of interest rates and levels of production, which result in equilibrium in the money market, the goods market, and the forex market. D) combinations of interest rates and levels of production, which result in equilibrium in the goods market and the forex market.