LAAS ObB-A OCB-D-A O & A-D-B MA MA Cefer to Exhibit 14-1. What sequence of points shows the short- and long-run consequences of a rise in velocity under monetarist assumptions? AA-E-B

[S1] Treasury bond buybacks may indicatethat there is a relaxed monetary policy. Abusiness entity would most likely expecthigher aggregate demand and higherinflation. [S2] Green policies against the useof plastic will be,implemented. All entities willbe negativelyaffected by this.  A. Only S1 is true.B. Only S2 is true.C. Both are true.D. Both are false.

In the full SR model, IS-LM, we know that if to falls, cet. par., then the real Money Supply will increase. True, False, Uncertain?  Explain. Show graphs in i-Y space and i-M/P spaces.

Which school of economic thoughts suggests that the speed of adjustment for self-correction to potential GDP would be very quick?O. monetarismO. Keynesian economicsO. supply-side economicsO. rational expectations theory