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:
to moderate what happens in the economy, possibly keep the citizens safe by making it illegal to buy or sell certain things, and watch over the economy, in case of an economic downfall.
Answer:
The USA army will only buy the best uniform from america because if they bought from india where anti military terrorists are at large. Therefore they could possibly place a detonation device in these which would result in death of soldiers for a uniform to be cheaper.
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