According to the More Sophisticated Quantity Theory of Money,if the Money

question 5

Multiple Choice

According to the more sophisticated quantity theory of money,if the money supply is increased

• A) the velocity of circulation will fall.
• B) both nominal and real GDP will rise if the economy is at less than full employment.
• C) nominal GDP will fall.
• D) nominal GDP will rise, but real GDP will fall if the economy is below full employment.
• E) nominal GDP will remain the same.

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