In a simplified banking system subject to a 25 percent required reserve ratio, a $1,000 open-market purchase by the Fed would cause the money supply to:

The flawed character cause of poverty refers to individual defects in aspiration or ability

Indicate whether the statement is true or false

According to the classical model, an increase in the money supply causes

a. output to increase in the long run. b. the unemployment rate to fall in the long run. c. prices to rise in the long run. d. interest rates to fall in the long run.