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If the money supply increases and nominal GDP remains the same, then A. price level increases.
<h3>What is Money Supply?</h3>
This refers to the total amount of money that is in circulation in a country that usually increases spending.
Hence, an open market sale by the federal reserve will increase the interest rates because it would increase investment spending because an OMO sale decreases interest rates which make getting loans easier.
M= Money supply
V= Velocity
P- Price level
Y= nominal GDP
Hence, with the increase in the money supply, then there would be an increase in the price supply.
Read more about money supply here:
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Answer:
"Why we grow so much corn (about 87 million acres each year) is because we can. ... Anti-ethanol advocates also like to pick on corn. They thrust with a two pronged argument: that too much good food producing corn is being used for fuel, and that ethanol is driving up the cost of corn and, thus, food."
Explanation:
