Under the Cambridge cash balance approach, money demand is determined by

Greater central bank independence is positively related to ________

A) a low rate of unemployment B) the length of terms of Governors on the Board of Governors C) a higher level of GDP D) the ability to fight inflation

The administration costs of a loan as a proportion of the total cost of the loan typically

a. decrease as the size of the loan increases. Therefore, the larger the loan, other things constant, the lower the interest rate b. decrease as the size of the loan increases. Therefore, the larger the loan, other things constant, the higher the interest rate c. increase as the size of the loan increases. Therefore, the larger the loan, other things constant, the lower the interest rate d. increase as the size of the loan increases. Therefore, the larger the loan, other things constant, the higher the interest rate e. increase as the size of the loan increases, but this has no impact on the interest rates charged for large loans compared to small loans