In the quantity equation framework for understanding the determinants of long-run inflation, a rise in government spending ________ velocity, putting ________ pressure on inflation

Leakages are greater than injections when total planned expenditures exceed real GDP

a. True b. False Indicate whether the statement is true or false

If a government wishes to reduce uncertainty with respect to its exchange rate, it can

a. establish fixed exchange rates b. establish floating exchange rates c. equilibrium exchange rates d. establish uniform exchange rates e. practice arbitrage