Author Question: If the Fed pursues expansionary monetary policy then A) the money supply will increase, interest ... (Read 118 times)

Coya19@aol.com · **on:** Jun 29, 2018

If the Fed pursues expansionary monetary policy then

A) the money supply will increase, interest rates will rise and GDP will rise.
B) the money supply will decrease, interest rates will fall and GDP will fall.
C) the money supply will decrease, interest rates will rise and GDP will fall.
D) the money supply will increase, interest rates will fall and GDP will rise.

Question 2

Refer to Figure 4-1. If the market price is 3.50, what is the consumer surplus on the first ice cream cone?

A) 0 B) 0.50 C) 3.50 D) 9.00