If the demand for money depends on the interest rate the velocity of circulation is?
Anot constant and the quantity theory of money does hold.
Bnot constant and the quantity theory of money does not hold.
Cconstant and the quantity theory of money does not hold.
Dconstant and the quantity theory of money does hold.
Correct answer
B. not constant and the quantity theory of money does not hold.
Explanation
The correct answer is not constant and the quantity theory of money does not hold..