If the profit effect and misperception effect existed in both the short run and the long run, then SRAS is ____ and LRAS is ____

Every time a new bank loan is made, M1 and M2 increase, demand deposits increase, and bank assets increase

a. true b. false

An increase in the liquidity of corporate bonds will ________ the price of corporate bonds and ________ the yield of Treasury bonds, everything else held constant

A) increase; increase B) reduce; reduce C) increase; reduce D) reduce; increase