If the Fed is targeting the money supply, it loses control

p>1. In an economy in which real output grows at an average rate of 3 Percent per year, a 7 percent average rate of growth in the money supply would result in an inflation rate of 4 percent, if velocity were constant?
True or False

2. If something causes the velocity of money to increase, the same amount of money will be able to support more transactions, so nominal GDP can increase.
True or False?

3. If the Fed is targeting the money supply, it loses control over the interest rate
True or False

4. In a macroeconomic model, increases in the money supply decrease the interest rate, increase investment, and thus raise employment and real GDP
True or False?

5. Both those who favor an active approach as well as those who favor a passive approach to policy believe that the economy can suffer from extreme and long-lasting swings in real GDP
True or False ?

6. If the Fed increases the money supply, GDP decreases because the resulting increase in the interest rate leads to an increase in investment
True or False ?

7. If at the end of the business day a bank has ,000 in excess reserves, and the required reserve ratio is 20 percent, the bank can maximize its profits if it loans ,000 to another bank
True or False

8. Unemployment cannot be maintained below the natural rate, no matter what inflation rate is tolerated
True or False ?

9. The rational expectations school advocates monetarism
True or False ?

10. If a bank borrows ,000 from the Fed and lends it out, the bank sets in motion a process that will result in an expansion of the money supply by a multiple of that ,000

True or False?
1.True
2.True
3.True
4.True
5.False
6.False
7.True
8.True
9.True
10.True
I am not sure!