If the prices of bonds go up, the interest rates will fall and the quantity of investment demanded will rise.

According to the equation of exchange, the

A) quantity of money divided by the inflation rate equals real GDP. B) quantity of money minus the velocity of circulation equals real GDP minus the price level. C) quantity of money multiplied by the velocity of circulation equals nominal GDP. D) velocity of circulation is always smaller than the inflation rate. E) quantity of money multiplied by the inflation rate equals nominal GDP.

A government-imposed price ceiling set below the market's equilibrium price for a good will produce an excess supply of the good

a. True b. False