When money demand increases, the Fed cannot keep both the money ...

[beccaep]

When money demand increases, the Fed cannot keep both the money supply from rising and the interest rate from rising.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Monetarists would argue that in the short run, increases in the money supply act to raise both investment and consumption, while also increasing the price level.
 a. True
  b. False
  Indicate whether the statement is true or false

[mammy1697]

Answer to Question 1

True

Answer to Question 2

True