Which of the following equations is most likely to represent short-run aggregate supply according to the misperceptions theory?

With the creation of the Federal Deposit Insurance Corporation

A) member banks of the Federal Reserve System were given the option to purchase FDIC insurance for their depositors, while non-member commercial banks were required to buy deposit insurance. B) member banks of the Federal Reserve System were required to purchase FDIC insurance for their depositors, while non-member commercial banks could choose to buy deposit insurance. C) both member and non-member banks of the Federal Reserve System were required to purchase FDIC insurance for their depositors. D) both member and non-member banks of the Federal Reserve System could choose, but were not required, to purchase FDIC insurance for their depositors.

Over the long run and across countries, there is evidence of ________ between the growth rate of the money supply and the inflation rate

A) no relationship B) a weak link C) a strong link D) a negative relationship