Suppose the economy was in equilibrium, and the national government increased spending by $200 billion. Monetarist theory would predict that the nation's:
a. Money supply will rise by $200 billion.
b. Monetary base will rise by $200 billion.
c. Money supply will rise by an amount greater than zero but less than $200 billion.
d. Monetary base will remain unchanged.
.D
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A. $1,000; 20,000 dollars2 B. $1,000; 40,000 dollars2 C. $1,000; 80,000 dollars2 D. $1,050; 20,000 dollars2
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Answer the following statement true (T) or false (F)