If the monetary authorities persistently expand the money supply at a rapid rate, the probable result will be

The price of a gallon of gasoline increased from $2.00 to $2.25 while the price of a ride on the city bus increased from 50 cents to 75 cents. The relative price of riding the city bus

A) increased from 0.25 to 0.6. B) decreased from 4.0 to 3.0. C) stayed constant at 0.25. D) stayed constant at 4.0.

If resource owners anticipated a monetary growth rate of 6 percent, but the money supply actually grew at only 2 percent, then: a. real wages would fall

b. output would decrease. c. output would increase. d. output would increase, but only if nominal wages were increased more rapidly than prices. e. the expected inflation rate was less than the actual rate.