In the Short-Run Velocity Is Not Constant

question 2

Multiple Choice

In the short-run velocity is not constant. Which of the following variables can be affected by a change in money supply?
I. real GDP
II. nominal GDP
III. the price level

• A) III only
• B) II and III
• C) I, II, and III
• D) If velocity is not constant, then none of the variables is affected.

---

Definitions:

Specific Events

Particular occurrences or happenings that are clearly defined or identified.

Specific Phobias

Extreme, irrational fear of a specific object, situation, or activity, leading to avoidance behavior and distress.

Irrational Fears

Excessive and unfounded fears that cannot be explained or rationalized by factual or logical reasoning.

Claustrophobia

Fear of tight, small places.