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.
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Answer: The Anti-federalists were known as the Democratic-Republican Party. Both of these groups were political parties in the early days of our country under the Constitution. ... They had different visions of how the country should operate. The Federalists believed in having a strong federal government.
