1- Continued inflation is caused by continued increases in aggregate demand resulting from continued increases in the money supply.

a. Trueb. False

2-According to monetarists, an increase in the money supply will raise Real GDP in the long run, but not in the short run.

a. Trueb. False

3-A change in the interest rate resulting from a change in the supply of loanable funds is called theexpectations effect.

a. Trueb. False

4-One of the positions held by monetarists is that prices and wages are flexible.

a. Trueb. False

5-In a country in which the government uses price controls to attempt to control inflation, nonmoney rationing devices will be needed to resolve shortages.

a. Trueb. False