Author Question: In the long run, increases in the money supply increase the economy's potential output level. a. ... (Read 128 times)

evelyn o bentley · **on:** Jun 30, 2018

In the long run, increases in the money supply increase the economy's potential output level.
a. True
b. False
Indicate whether the statement is true or false

Question 2

The quantity theory of money states that increases in the money supply result in proportional increases in real GDP.
a. True
b. False
Indicate whether the statement is true or false