At a higher nominal interest rate, the demand for money decreases

The money supply, as measured by M1, consists almost entirely of currency

Indicate whether the statement is true or false

Efficiency wage theory provides a reason for uncontracted nominal wages to ________ when nominal aggregate demand falls, thus ________ a recession

A) fall proportionately, leading to B) fall proportionately, preventing C) remain unchanged, leading to D) remain unchanged, preventing