1. What is helicopter money? Helicopter money A. is any money that helicopters drop from the sky B. is money that is transferred between federal reserve banks by helicopter C. describes the increase in money resulting from Federal Reserve policies D. is a term used to describe money that people receive by direct transfer 2. What is the short-run effect of an increase in the quantity of money? In the short run, an increase in the quantity of money A. raises the price level by a percentage equal to the percentage change in the quantity of money B. lowers the price of bonds and raises the interest rate C. increases the demand for money D. raises the price of bonds and lowers the interest rate 3. What is the long-run effect of an increase in the quantity of money? In the long run, an increase in the quantity of money A. raises the price level by a percentage equal to the percentage change in the quantity of money B. increases real GDP C. lowers the nominal interest rate and the real interest rate D. increases employment and decreases