Assume Monetary Equilibrium Exists; That Is, the Desired and Actual

question 89

Multiple Choice

Assume monetary equilibrium exists; that is, the desired and actual supply of money are equal. Also assume that nominal GDP equals $960 billion and the money supply is $160 billion. From a strict
Monetarist view, an increase in the money supply by $12 billion will increase nominal GDP by

• A) $13 billion.
• B) $24 billion.
• C) $72 billion.
• D) $80 billion.

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Definitions:

Sociological Observations

The practice of examining social behaviors, interactions, and patterns to understand how societies function and evolve.

Theoretical Abstractions

Concepts or models that simplify complex realities to facilitate understanding or analysis.

Economic Situation

The state of economic conditions and variables in a specific region or globally at a particular time, including factors like GDP growth, employment rates, inflation, and market stability.

Class

A system of ordering society whereby people are divided into sets based on perceived social or economic status.