If two countries adhere to a gold standard, the exchange rate for their currencies is fixed

The money demand curve will shift to the left if:

A. the price level decreases. B. the nominal interest rate decreases. C. the nominal interest rate increases. D. the price level increases.

When attorneys, accountants and other professionals wear expensive clothing, it:

A. does not serve as a credible signal of ability because anyone can wear nice clothes. B. can serve as a credible signal of ability. C. is a waste of money because professionals do not need to signal their ability. D. only serves as a useful signal of ability if they already have well-established reputations.