If Velocity Is Constant, Which of the Following Results Flow

question 80

Multiple Choice

If velocity is constant, which of the following results flow from the quantity equation?

• A) Nominal GDP could change only if there were a change in the money supply.
• B) In the short run, nominal GDP could change only if there were a change in the money supply and in the long run, nominal GDP could change only if there were a change in the money supply.
• C) In the short run, nominal GDP could change only if there were a change in the money supply but in the long run, nominal GDP is affected by changes in any component of GDP.
• D) In the short run, nominal GDP is affected by changes in any component of GDP but in the long run, nominal GDP could change only if there were a change in the money supply.

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