If the monetary authorities persistently expand the money supply ...

[jlmhmf]

If the monetary authorities persistently expand the money supply at a rapid rate, the probable result will be:
 a. inflation.
 b. low nominal interest rates.
  c. rapid growth of real GDP.
  d. all of the above.

Question 2

We can say that the potential level of real GDP is fixed because the long-run aggregate supply curve is a vertical line.
 a. True
  b. False
  Indicate whether the statement is true or false

[mjbamaung]

Answer to Question 1

a

Answer to Question 2

False