According to the Quantity Equation, If Velocity and Real GDP

question 70

Multiple Choice

According to the quantity equation, if velocity and real GDP are constant and the Reserve Bank increases the money supply by five per cent, then the price level

• A)decreases by 10 per cent
• B)decreases by five per cent
• C)is also constant
• D)increases by five percent

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Definitions:

Quantity Supplied

The total amount of a product that producers are willing and able to sell at a given price over a specific period.

Quantity of Cameras

The total number of cameras produced, held in inventory, or sold in a given period.

Demand for Film

Demand for film encompasses the desire and willingness of consumers to purchase and view cinematic productions, influenced by factors such as genre, cast, and reviews.

Price of Cameras

The amount of money required to purchase a camera, influenced by factors such as technology, brand, market demand, and production costs.