The difference between the simple monetary model and the general monetary model of exchange rate determination in the long run is that:单项选择题

题目图片
A

a. The simple model refers to only one country, while the general model includes all nations.

B

b. The simple model assumes that real money demand depends on real income only, while the general model assumes that real money demand depends on real interest rate only.

C

c. The general model applies to increases and decreases in the relevant variables; the simple model does not allow relevant variables to decrease.

D

d. The simple model assumes real money demand depends on real income only, while the general model assumes that real money demand also depends on the nominal interest rate.

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