In the long run, increases in the money supply increase the ...

[evelyn o bentley]

In the long run, increases in the money supply increase the economy's potential output level.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

The quantity theory of money states that increases in the money supply result in proportional increases in real GDP.
 a. True
  b. False
  Indicate whether the statement is true or false

[djofnc]

Answer to Question 1

False

Answer to Question 2

False

[evelyn o bentley]

Thanks for the timely response, appreciate it

[jojobee318]

Gracias!