The demand for money will increase when inflation increases. True or false

What would likely be the short-term impact on a country's inflation rate if the central bank significantly increases the money supply? A. The inflation rate would decrease. B. The inflation rate would remain unchanged. C. The inflation rate would increase. D. The inflation rate would initially increase, then sharply decrease.

According to Monetarists, what should the government do if unemployment is 4% and inflation is 12%? Select one: a. Decrease the supply of money b. Decrease government spending c. Raise taxes d. Do nothing e. Lower interest rates

The economy of Macro Island is described by the quantity equation with constant velocity. All residents of Macro Island understand the quantity theory and use it to form their expectations of inflation. Real income grows at a steady 2 percent per year, and the nominal interest rate is 5 percent. In one year, people had expected the money supply to grow by 4 percent, but in fact it grew by only 3 percent.   a. What was the inflation rate? (3% 4% 1% 2%)   b. What was the expected inflation rate? (1% 4% 3% 2%)   c. What was the ex ante real interest rate? (4% 2% 1% 3%)   d. What was the ex post real interest rate? (2% 1% 4% 3%)   e. Did the deviation of inflation from what was expected hurt creditors or debtors? ( Creditors Debtors)