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Question: When the FED increases the money supply: (think growth!)  a) GDP increases because resulting incr...

Show transcribed image text When the FED increases the money supply: (think growth!) a) GDP increases because resulting increase in the interest rate leads to a decrease in investment. b) GDP increases because the resulting decrease in the interest rate leads to an increase in investment. c) GDP decreases because the resulting increase in the interest rate leads to a decrease in investment. d) GDP decreases because the resulting increase in the interest rate leads to an investment. e) GDP decreases because the resulting decrease in the interest rate leads to an increase in investment When the FED increases the money supply; a. aggregate demand increases, which increase real GDP and the price level. b) aggregate demand increases, which decreases real GNP and the price level. c) aggregate demand falls, which decrease real GNP and increases the price level. d) aggregate demand falls, which increases real GDP and the price. The father of modem monetarism is: a) Milton Friedman b) Paul Samuelson c) John Maynard Keynes d) Adam Smith e) Thomas Gresham Sir The equation of exchange is: a) quantity supplied equals quantity demanded b) quantity bought equals quantity sold c) M times V = P times Y d) C+ I +G = Y e) Input equals output. The first "non activists" were: a) classical economists. b) Keynesian economists. c) Monetarists. d) Believers in government intervention. e) Followers of Milton Friedman. The economists most likely to believe that prices and wages are inflexible are: a) pre-Keynesian economists. b) Non interventionists c) believers in rational expectations. d) activists. e) nonactivists.

When the FED increases the money supply: (think growth!) a) GDP increases because resulting increase in the interest rate leads to a decrease in investment. b) GDP increases because the resulting decrease in the interest rate leads to an increase in investment. c) GDP decreases because the resulting increase in the interest rate leads to a decrease in investment. d) GDP decreases because the resulting increase in the interest rate leads to an investment. e) GDP decreases because the resulting decrease in the interest rate leads to an increase in investment When the FED increases the money supply; a. aggregate demand increases, which increase real GDP and the price level. b) aggregate demand increases, which decreases real GNP and the price level. c) aggregate demand falls, which decrease real GNP and increases the price level. d) aggregate demand falls, which increases real GDP and the price. The father of modem monetarism is: a) Milton Friedman b) Paul Samuelson c) John Maynard Keynes d) Adam Smith e) Thomas Gresham Sir The equation of exchange is: a) quantity supplied equals quantity demanded b) quantity bought equals quantity sold c) M times V = P times Y d) C+ I +G = Y e) Input equals output. The first "non activists" were: a) classical economists. b) Keynesian economists. c) Monetarists. d) Believers in government intervention. e) Followers of Milton Friedman. The economists most likely to believe that prices and wages are inflexible are: a) pre-Keynesian economists. b) Non interventionists c) believers in rational expectations. d) activists. e) nonactivists.