It Has Been Shown That Increases in the Money Supply

question 53

Multiple Choice

It has been shown that increases in the money supply are directly related to the rate of inflation.If the previous statement is true,then:

• A) nations that increase their money supply most rapidly will be the most prosperous.
• B) high inflation will normally be associated with large increases in the money supply.
• C) high inflation will normally be associated with large decreases in the money supply.
• D) costs to print money will rise when the money supply falls.
• E) real GDP rises whenever the money supply increases.

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