QUESTIONS 12 AND 13 RELATE TO CATHERINE MARCO. A TOTAL OF 35 MINUTES I...

2.

“When economic growth increases, industrial production is likely to expand at a

faster rate than the domestic money supply.”

A.

Judge whether each of Marco’s two statements is correct or incorrect. If incorrect, give

one reason why the statement is incorrect.

Answer Question 13-A in the Template provided on page 85.

(4 minutes)

Marco anticipates a change in the domestic economy from stable inflation to rising inflation, and

presents the following two recommendations to the Board: