If the Velocity of Money Is Constant, Then a 2

question 105

Multiple Choice

If the velocity of money is constant, then a 2% increase in the money supply

• A) must be the result of a 2% increase in the price level.
• B) would change nominal GDP by a smaller percentage.
• C) would change nominal GDP by an equal percentage.
• D) would change nominal GDP by a larger percentage.

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Definitions:

Native Americans

Indigenous peoples of the United States, including both Native American tribes and Alaska Natives.

Free Association

A psychoanalytic technique in which a patient says whatever comes to mind without censorship as a way to uncover unconscious thoughts and feelings.

Psychoanalysis

A psychological theory and therapy method developed by Sigmund Freud, focused on unconscious motivations and conflicts as the drivers of human behavior.

Schizophrenics

Individuals diagnosed with schizophrenia, a mental disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.