In the money market diagram, the supply curve of money is vertical because the quantity of money supplied increases only if the Fed increases the money supply.

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An extraordinarily high rate of inflation in Germany after the end of World War I likely contributed to the rise of Nazism and World War II.

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If P denotes the price of goods and services measured in terms of money, then 1/P represents the value of money and an increase in the value of money is associated with a decrease in P.

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According to the principle of monetary neutrality, a decrease in the money supply will decrease real GDP and decrease real interest rates

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Unexpected low inflation has a greater cost for those who save and lend than those who borrow.

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false