According to the Quantity Theory of Money Currently Used by Monetarists

question 86

Multiple Choice

According to the quantity theory of money currently used by monetarists, assuming velocity is constant (at a value of 5) , a 10 percent increase in the money supply will raise

• A)nominal GDP by 50 percent.
• B)real GDP by 10 percent.
• C)nominal GDP by 10 percent.
• D)real GDP by 50 percent.