Because money serves as a medium of​ exchange, an increase in real​ GDP: a. decreases the buying and selling of goods and services and so decreases the demand for money. b. increases the buying and selling of goods and services and so decreases the demand for money. c. increases the buying and selling of goods and services and so increases the demand for money. d. decreases the buying and selling of goods and services and so increases the demand for money.

If the money supply increases, while prices and velocity remain constant, real GDP will:

In the long run, an increase in the money supply will lead toResponsesA  a decrease in velocity. a decrease in velocity.B an increase in velocity.an increase in velocity.C a decrease in real GDP.a decrease in real GDP.D an increase in real GDP.

What will an increase in the money supply tend to do?Multiple ChoiceIncrease interest rates and increase the equilibrium GDP.Lower interest rates and increase the equilibrium GDP.Interest rate and equilibrium GDP does not change.Lower interest rates and lower the equilibrium GDP.Increase interest rates and lower the equilibrium GDP.

Because GDP rose more than nominal GDP, output must have increased more than prices.

If real GDP​ decreases: a. there will be a downward movement along the money demand curve. b. the money demand curve will shift to the left. c. there will be an upward movement along the money demand curve. d. the money demand curve will shift to the right.