Please fill in the blank & answer multiple choice questions :If the money supply is increased by 5% and:a. velocity is constant, and the output is constant at full employment output, then inflationisb. velocity is constant, and the full employment output increased by 2%, then inflation isa. 0.05, 0.03b. 0.07, 0.02c. 0.09, 0.06d. 0.10, 0.11

Correct : a. 0.05, 0.03 First Blank: 0.05 Second blank : 003

Answered: If the money supply is increased by 5%…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If the money supply is increased by 5% and: a. velocity is constant, and the output is constant at full employment output, then inflation is b. velocity is constant, and the full employment output increased by 2%, then inflation is a. 0.05, 0.03 b. 0.07, 0.02 c. 0.09, 0.06 d. 0.10, 0.11