If the economy is not operating at full-employment real GDP, classical economists prescribe a government policy of nonintervention

The quantity theory of money asserts that an increase in the quantity of money

A) will decrease the price level by an offsetting amount. B) by n percent will lead to an increase in the price level by n + 1 percent. C) will lead to an equal percentage increase in real GDP. D) will lead to an equal percentage increase in the price level.

Suppose that the latest Consumer Price Index (CPI) release shows a higher inflation rate in the U.S. than was expected. Everything else held constant, the release of the CPI report would immediately cause the demand for U.S

assets to ________ and the U.S. dollar would ________. A) increase; appreciate B) increase; depreciate C) decrease; appreciate D) decrease; depreciate