In the long run,increases or decreases in the money supply
A) cause real potential output to rise and fall.
B) must ultimately be approved by Congress.
C) may increase or decrease aggregate supply but not aggregate demand.
D) are tied to increases and decreases in the U.S. government holdings of gold.
E) raise and lower the price level but have no effect on real GDP.
Correct Answer:
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Q10: The Federal Reserve influences the money supply
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