The quantity theory of money states that real GDP is

Select one:

a.not influenced by the quantity of money.

b.never different from potential GDP.

c.equal to nominal GDP multiplied by the quantity of money.

d.inflation results from changes in real interest rate in the long run.

e.equal to nominal GDP divided by the quantity of money.

Financial innovations can have the effect of

Select one:

a.only increasing the demand for money.

b.increasing the Reserve Bank's monetary policy.

c.either increasing or decreasing the demand for money depending on what the innovation is.

d.only decreasing the demand for money.

e.none of the above are correct.

Australians demand Fijian dollars in order to

Select one:

a.buy Fiji-made products.

b.balance the net exports account.

c.allow Fijians to buy Australian products.

d.balance the current account.

e.supply Australian goods in Pacific markets.