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:

Personhood

The quality or condition of being considered an individual person, especially in legal or ethical contexts.

Moral Sense

Refers to an individual's ability to distinguish right from wrong and to feel empathy or guilt, often considered innate to human nature.

Consciousness

The state or quality of awareness, or, of being aware of an external object or something within oneself.

Growing Child

A developmental stage encompassing the physical, emotional, and intellectual growth and changes that occur in a person from infancy through adolescence.