If Velocity Is Constant in the Long Run, Which of the Following

question 25

Multiple Choice

If velocity is constant in the long run, which of the following results flow from the quantity theory of money?

• A) A change in the money supply changes real GDP by an equal percentage.
• B) A change in the money supply changes nominal GDP by an equal percentage.
• C) A change in the money supply changes real interest rates by an equal percentage.
• D) A change in the money supply changes consumer lending by an equal percentage.

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Definitions:

Parked Car

A vehicle that is stationary and not in use, typically positioned in a parking space or along the side of a road.

Visiting

The act of going to see and spend time with someone or at a place for a specified purpose or period.

Employment Discrimination

Unfair or unequal treatment of an employee or job applicant based on personal characteristics, such as race, gender, age, or sexual orientation.

Discriminatory Attitudes

Prejudiced outlooks or biases that unfairly favor one group over others based on race, gender, age, religion, or other characteristics, leading to unfair treatment.