1 If there is disinflation, prices are increasing

True or False

2 An increase in the real interest rate is assumed to result in a decrease in saving.

True or False

3 A Quantity Theory of Money implication is the proposition that in the long run with output equal to a fixed level of potential output

a) the velocity of money grows at the same time as the inflation rate

b) the inflation rate equals the money supply growth rate

c) the inflation rate equals 0

d) growth rate of output is greater than the growth rate of the velocity of money

e) the velocity of money grows at the same rate as the money supply