Using the Equation of Exchange and Assuming Fixed Price Controls

question 139

Multiple Choice

Using the equation of exchange and assuming fixed price controls and a constant velocity of money,a decrease in the discount rate could temporarily result in

• A)Higher velocity.
• B)Higher quantity of real output.
• C)Higher price level.
• D)Lower money supply.

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The quality of being novel or unique in concept, creation, or execution.

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