To a bank, reserves are classified as

Using the quantity equation MV = PY, which of the following might happen if the money supply increases?

A. Velocity is constant, prices rise, and total is constant. B. Velocity increases, prices are constant, and total output is constant. C. Velocity is constant, prices fall, and total output is constant. D. Velocity rises, prices fall, and total output is constant.

Average revenue equals the change in total revenue divided by the change in the quantity of output produced

a. True b. False