An increase in the interest rate reduces the opportunity cost of holding money

Which of the following best describes the assumption that monetarists make regarding velocity?

a. It is fairly predictable in the short run and certainly in the long run. b. It is not possible to predict velocity in the short or long run. c. It is variable in the long run but predictable in the short run. d. It is constant in the long run but variable in the short run.

Per capita gross national income (GNI) increases when

A. GNI does not change and the population increases. B. GNI increases and the population does not change. C. GNI and the population decrease at the same rate. D. GNI and the population increase at the same rate.