In the Short-Run Velocity Is Not Constant

question 2

Multiple Choice

In the short-run velocity is not constant. Which of the following variables can be affected by a change in money supply?
I. real GDP
II. nominal GDP
III. the price level

• A) III only
• B) II and III
• C) I, II, and III
• D) If velocity is not constant, then none of the variables is affected.

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Definitions:

Peripheral Route Persuasion

A method of persuasion that relies on superficial cues or factors, such as attractiveness or celebrity endorsement, rather than logical argumentation.

Cognitive Dissonance

A psychological phenomenon occurring when an individual experiences discomfort from holding two or more conflicting beliefs, ideas, or values.

Central Route Persuasion

A method of persuasion that involves deeply processing the content of a message, considering the arguments and evidence in detail.

Situational Attribution

The process of assigning the cause of behavior to an external situation or environment, rather than to internal characteristics.