If a country is producing efficiently and is on the production possibilities frontier, the only way to produce more of one good is to produce less of the other

Suppose that the Fed decides to decrease the money supply by 0.87 percent. If the velocity of money is constant, then the quantity theory of money predicts that:

a. nominal GDP will remain unchanged. b. the quantity of output will rise by 0.87 percent. c. nominal GDP will fall by 0.87 percent. d. the price level will fall by 0.87 percent. e. real GDP will fall by 0.87 percent.

The Fed can change the federal funds rate by issuing an order, but it cannot change the discount rate this way

Indicate whether the statement is true or false