According to the quantity theory of money, an increase in the stock of precious metals or bills of exchange usually results in increased trade and rising prices. Both economic events helped merchant capitalists and the king

In the above figure, point E represents the level of real GDP at which planned saving equals planned investment. At point C

A) changes in inventories cannot be determined. B) unused industrial capacity exists in the economy. C) unplanned inventories increase. D) unplanned inventories decrease.

Suppose the Fed purchases $1 million in bonds in the open market. Explain how the money supply can increase by more than $1 million

What will be an ideal response?