If the legal reserve requirement is 10 percent, $1,000 cash deposited into a demand deposit account will generate, assuming willing borrowers, an increase in the money supply of

From the quantity equation we find that the rate of inflation is equal by definition to the growth rate of the money supply ________ the growth rate of velocity ________ the growth rate of real GDP

A) plus, plus B) plus, minus C) minus, plus D) minus, minus

A decrease in net taxes: a. increases GDP as much as an equal decrease in government purchases. b. increases GDP less than an equal increase in government purchases. c. decreases GDP more than an equal decrease in government purchases. d. changes GDP in an unpredictable manner

e. has no effect on GDP.