If the Velocity of Money Is Constant, Then

question 175

Multiple Choice

If the velocity of money is constant, then

• A) a change in nominal GDP can be caused only by a change in the money supply.
• B) a change in the money supply can be caused only by a change in the price level.
• C) a change in the money supply is negatively related to a change in nominal GDP.
• D) a change in the money supply would result in no change in nominal GDP.

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