Suppose that the nominal money supply equals 2 billion and ...

[storky111]

Suppose that the nominal money supply equals 2 billion and nominal GDP is 16 billion. Then, according to the equation of exchange, the velocity of money equals 8.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Assume there is a price ceiling imposed on a good which is below the equilibrium price. Which of the following changes would reduce the size of the surplus?
 a. An increase in demand.
 b. A decrease in demand.
 c. An increase in supply.
 d. None of the above; there is no surplus.

[joanwhite]

Answer to Question 1

True

Answer to Question 2

d