If the Velocity of Money Is Constant, Then

question 175

Multiple Choice

If the velocity of money is constant, then

• A) a change in nominal GDP can be caused only by a change in the money supply.
• B) a change in the money supply can be caused only by a change in the price level.
• C) a change in the money supply is negatively related to a change in nominal GDP.
• D) a change in the money supply would result in no change in nominal GDP.

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Definitions:

Operational Definition

A precise definition of a term in a hypothesis, which specifies the operations for observing and measuring the process or phenomenon being defined.

Culture

The social behavior and norms found in human societies, including knowledge, beliefs, arts, laws, customs, capabilities, and habits.

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A psychological perspective that emphasizes individual potential for growth and the concept of free will.

Personality

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