In the Long Run, a Decrease in the Money Supply

question 151

Multiple Choice

In the long run, a decrease in the money supply

• A)is expected to lead to a decrease in nominal GDP.
• B)is expected to lead to a decrease in velocity.
• C)is expected to lead to an increase in nominal GDP.
• D)is expected to lead to an increase in velocity.
• E)has no predictable effect on nominal GDP.

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Definitions:

Growth Rate

The rate at which the quantity of something, such as population, economy, or biological growth, increases over a certain period of time.

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A service that provides care and educational activities for children when their parents or guardians are unavailable during the day.