The Fed has complete control over the money supply. Indicate ...

[mspears3]

The Fed has complete control over the money supply.
 
  Indicate whether the statement is true or false

Question 2

Refer to Figure 27-11. If government purchases increase by 100 billion and lead to an ultimate increase in aggregate demand as shown in the graph, the difference in real GDP between point A and point B will be
 
  A) less than 100 billion.
  B) 100 billion.
  C) more than 100 billion.
  D) There is insufficient information given here to draw a conclusion.

[Amiracle]

Answer to Question 1

FALSE

Answer to Question 2

C