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:

Social Structures

The organized set of social institutions and patterns of institutionalized relationships that together compose society.

Positions

The roles, stances, or locations individuals or groups occupy within social, cultural, or political contexts.

Functional Explanation

An approach that explains social phenomena in terms of the functions they serve for a society or an organism.

Prestige

Social esteem, regard, or respect accorded by members of a society to individuals, jobs, or items based on perceived quality or merit.