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All of the following statements are true except for: a) A 1% increase in money supply growth causes a 1% increase in the inflation rate
All of the following statements are true except for: a) A 1% increase in money supply growth causes a 1% increase in the inflation rate b) A 1% increase in the rate of inflation causes a 1% increase in the nominal interest rate. c) If the Fed wishes the inflation rate to be zero, it should increase the money supply at a rate greater than that of output growth. d) The price level: is the dollar cost of one unit of GDP and the inflation rate measures the growth rate of the price level
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