Author Question: If policies of the Fed cause the money supply to increase, and velocity is held constant, the ... (Read 40 times)

kfurse · **on:** Jun 30, 2018

If policies of the Fed cause the money supply to increase, and velocity is held constant, the expected outcome would be:
a. P Q would increase, and the general price level would increase if Q remained constant.
b. P Q would decrease, and the general price level would decrease if Q remained constant.
c. P Q would decrease, and the general price level would increase if Q increased.
d. insufficient information is available to arrive at a conclusion.

Question 2

Economic growth in any country is reflected by an increase in real GDP.
a. True
b. False
Indicate whether the statement is true or false