An increase in the supply of money will lead to a(n)

A) increase in equilibrium real GDP and an increase in equilibrium price level.
B) increase in equilibrium real GDP and a decrease in equilibrium price level.
C) decrease in equilibrium real GDP and an increase in equilibrium price level.
D) decrease in equilibrium real GDP and a decrease in equilibrium price level.

Ans: A) increase in equilibrium real GDP and an increase in equilibrium price level.

Economics

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If the Fed conducts open market sales, the equilibrium value of money decreases and the equilibrium price level increases

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