The liquidity, income, price-level, and expectations effects help to explain how changes in __can affect _. a. the money supply; the interest rate b. velocity; the interest rate c. real gdp; the money supply d. the interest rate; the money supply e. velocity; real gdp

The rate, at which banks and other financial institutions offer the acceptance of deposit from their customers, which are under the control and regulations of the country's central bank, is known as interest rate.

There exists a direct relationship between the interest rate and velocity of the money, which indicates that when the velocity of money in the market increases, the interest rate also increases and vice versa.

Hence, option B holds true and states regarding velocity and interest rate.

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The liquidity, income, price-level, and expectations effects help to explain how changes in ________________can affect _______________. a. the money supply; the interest rate b. velocity; the interest rate c. real gdp; the money supply d. the interest rate; the money supply e. velocity; real gdp

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What is the interest rate?

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The liquidity, income, price-level, and expectations effects help to explain how changes in __can affect _. a. the money supply; the interest rate b. velocity; the interest rate c. real gdp; the money supply d. the interest rate; the money supply e. velocity; real gdp