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:

Cause in Fact

An element in tort law that establishes a direct connection between the defendant's conduct and the harm suffered by the plaintiff.

Compensable Loss

A financial loss for which one can receive compensation, often through insurance or litigation.

Duty of Care

A duty mandated by law placed on a person to exercise reasonable care in actions that might predictably injure other people.

Skateboard

A small, narrow board with two pairs of wheels attached to its bottom, used for the sport of skateboarding.