When
the growth rate of the money supply increases, interest rates end up
being permanently  


lower
if

5. Everything else held constant, if aggregate output is to theof the IS curve, then there is an excessof goods which will cause aggregate output to fall. ( )

4. The _____traces out the points for which total quantity of goods produced equals total quantity of goods demanded. ( )

3. When the interest rate rises,_______ ( )

2. Aggregate output is related to autonomous consumer expenditure, and is related to the level of taxes. ( )

1.Keynes reasoned that consumer expenditure is most closely related to ( )

5. In Friedmanʹs modern quantity theory, velocity is procyclical because

4. Keynes hypothesized that the speculative component of money demand was primarily determined by the level of

3. The classical economists believed that if the quantity of money doubled,

2. If nominal GDP is $10 trillion, and the money supply is $2 trillion, velocity is

1.The velocity of money is