If Velocity Is Constant, Which of the Following Results Flow

question 80

Multiple Choice

If velocity is constant, which of the following results flow from the quantity equation?

• A) Nominal GDP could change only if there were a change in the money supply.
• B) In the short run, nominal GDP could change only if there were a change in the money supply and in the long run, nominal GDP could change only if there were a change in the money supply.
• C) In the short run, nominal GDP could change only if there were a change in the money supply but in the long run, nominal GDP is affected by changes in any component of GDP.
• D) In the short run, nominal GDP is affected by changes in any component of GDP but in the long run, nominal GDP could change only if there were a change in the money supply.

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Definitions:

Fraud in the Inducement

A legal term referring to a deceptive act used to convince someone to enter into a contract, which significantly impacts the victim's decision to agree.

False Representation

The act of providing untrue, misleading, or deceptive information with the intent to defraud others.

Material Fact

A fact that is significant or essential to the issue or matter at hand, which could influence a decision.

Duress

Unlawful pressure or coercion used on a person to compel them to perform an act against their will or judgment.